Law of Code #151 - SEC Commissioner Hester Peirce and Crypto Task Force Chief Counsel Mike Selig on Tokenizing Securities & Market Structure rules
7 snips
Jul 29, 2025 
Hester Peirce, SEC Commissioner and leader of the Crypto Task Force, shares insights on tokenized securities and the regulatory landscape. Mike Selig, Chief Counsel of the Crypto Task Force, weighs in on exemptive relief and the challenges of market structure. They discuss the potential of zero-knowledge proofs for compliance and the SEC's approach to yield-bearing stablecoins. The conversation also touches on decentralization and best practices for engaging with the SEC, as well as the collaboration between the SEC and CFTC for future regulations.
AI Snips
Chapters
Transcript
Episode notes
Tokenization Depends on Context
- The classification of tokenized securities depends heavily on the facts and circumstances of how tokens are issued and used.
- Different tokenization models have distinct regulatory implications affecting trading, disclosure, and investor access.
Engage Early for Exemptive Relief
- Innovators should engage early with the SEC to explore models for tokenized securities and seek exemptive relief.
- The SEC is open-minded and willing to evaluate innovative approaches without enforcing a one-size-fits-all model.
Unique Risks and Opportunities
- Tokenized securities face unique regulatory risks such as insider trading, transfer restrictions, and price dislocations between on-chain and off-chain markets.
- Smart contracts can address some compliance issues more efficiently than traditional systems.