The U.S. Securities and Exchange Commission (SEC) has issued new guidance on tokenized securities, making clear that digital tokens representing securities are subject to the same federal securities laws as traditional instruments — and that issuing them on a blockchain does not exempt them from compliance. The Divisions of Corporation Finance, Investment Management, and Trading and Markets created this guidance and made it available in the SEC’s official statement on tokenized securities. The SEC said a tokenized security will still be an existing security under US law even if crypto ledgers classify it otherwise. When tokenized securities have the same rights and privileges as traditional securities, the SEC has indicated that such securities can be treated as belonging to the same class under certain provisions of the securities laws. The agency said third-party tokenized securities will be divided into custodial and synthetic securities.