Hester Peirce: SEC Needs Clarity on Crypto Securities Language

• Hester Peirce cites legal imprecision in the SEC’s crypto classification terminology.
• Peirce thinks crypto assets could become securities in the future.
• Digital asset creators need to pay attention to their end product.

However, the SEC Commissioner clarified that some crypto assets could still be considered securities. She suggested that tokenized versions of traditional stocks could exist in the future, but this wouldn’t alter their classification as securities. The same would apply to tokenized bonds, which remain securities despite their tokenization.

Read also: Confusion Grows as SEC Flip-Flops on ‘Crypto Asset Securities’

Peirce believes it’s crucial for people creating crypto assets to ensure they fully understand the legal implications of their products. She noted that some crypto asset creators may be dividing an existing asset or introducing something…