Issuers of tokens backed by equity are required to report to the SEC. This was stated by the agency’s head, Gary Gensler.
His remarks focused on security-based swaps. Regulation of them has undergone significant changes since the passage of the Додд-Франкa Act. At that time Gensler led the CFTC.
From November 2021, issuers of such swaps will be required to comply with additional requirements. These include new counterparty protection measures, capital and margin standards, internal risk management, trade affirmation, and record-keeping and reporting procedures.
Gensler explained that these requirements would also apply to issuers of tokens whose underlying asset is security-based swaps.
“Ряд платформ предлагают токенизированные акции или другие ведущие себя как деривативы продукты, цена которых зависит от стоимости ценных бумаг. Не имеет значения что это: security-токен, обеспеченный акциями стейблкоин или любой другой инструмент, который дает синтетический риск (exposure) на динамику акций. Эти платформы — как централизованные, так и децентрализованные — подпадают под действие Закона о ценных бумагах и должны работать в его правовых рамках”, — подчеркнул глава SEC.
In the course of his remarks, Gensler said the agency would use all available tools to protect investors. He lamented that the regulator could not track and respond to all such proposals.
In July 2020 the SEC and CFTC fined the Abra platform for unregistered securities swaps.
At the time regulators explained that American and overseas clients of the firm from December 2017 to October 2019 engaged in illegal over-the-counter swaps on digital assets and foreign currencies.
In April, Binance announced the listing of tokenised shares, adding Tesla. Later on the platform Coinbase Stock Token trading began.
In the same month a Bitcoin exchange announced the listing of tokens backed by a portfolio of real shares of Microstrategy, Apple and Microsoft.
Some European watchdogs took an interest in Binance’s new service. The Financial Times reported that regulators in the United Kingdom and Germany were examining its compliance with local law.
At the end of April BaFin warned investors about possible breaches by Binance of securities laws in connection with the launch of trading tokenised shares.
In July 2021, the Bitcoin exchange Binance announced that it would discontinue support for tokenised shares. Clients in the European Economic Area and Switzerland may transfer their assets to the investment-services firm CM-Equity AG.
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