Hester M. Peirce, a commissioner of the United States Securities and Exchange Commission (SEC), has issued a brief statement on the tokenization of real-world assets (RWA), especially by traditional financial institutions. In a statement on Wednesday, July 9, 2025, Hester highlighted that blockchain tokenization is enchanting but not magical.
As such, Hester notified the traditional financial institutions seeking to tokenize real-world assets to consider the set existing securities regulations. Moreover, she implied that blockchain technology does not have a magical ability to transform the underlying asset from adhering to the securities regulations.
“Tokenized securities are still securities. Accordingly, market participants must consider—and adhere to—the federal securities laws when transacting in these instruments,” Hester noted.
Market Reactions from Hester’s Statement of Tokenized Securities
According to James Seyffart, an ETF and crypto report