SEC's Jan 28, 2026 Statement on Tokenized Securities - A Technical Breakdown & My Take The SEC's Divisions of Corporation Finance, Investment Management, and Trading & Markets just dropped a joint staff statement clarifying how federal securities laws apply to tokenized securities. (Full doc: https://www.sec.gov/newsroom/speeches-statements/corp-fin-statement-tokenized-securities-012826) Key definition: A tokenized security is any financial instrument that qualifies as a “security” under U.S. law (e.g., stock, bond, note per Securities Act definitions), but formatted/represented as a crypto asset where ownership records are maintained (in whole or in part) on one or more crypto networks (blockchains/DLT). Core principle repeated throughout: Substance over form. The recording method (on-chain master file vs traditional off-chain database) does not change the legal status. If it meets the definition of a security, registration under the '33 Act (or exemption), '34 Act reporting, etc., still applies - no free pass from tokenization.(Bon Hwa SW)