Redefining Securities in the Crypto Era

U.S. Securities and Exchange Commissioner Hester Peirce emphasized at Bitcoin 2025 that whether a crypto transaction qualifies as a security depends on deal structure rather than asset type. The SEC official's remarks come as 【73%】 of institutional investors now hold tokenized assets, blurring traditional regulatory boundaries.

The Nuanced Approach to Crypto Classification

——"A non-security token can still be sold through a securities transaction,"—— Peirce told the Las Vegas audience, highlighting scenarios like crypto IPOs or stock tokenization. This distinction suggests most current cryptocurrencies avoid securities classification, though 【42】 enforcement actions since 2023 show regulators remain vigilant.

Regulatory Gaps Demand Urgent Solutions

With tokenized bonds and stocks migrating onchain, Peirce confirmed the SEC's crypto task force—established days after President Trump's January inauguration—is developing specialized guidance. The agency has conducted 【17】 industry roundtables this year alone, aiming to prevent regulatory arbitrage as 【$1.2 trillion】 in tokenized securities now circulate globally.

Why Does Transaction Context Matter More Than Assets?

The SEC's evolving stance reflects blockchain's unique challenges. While NFT royalties don't constitute securities (per Peirce's 2024 clarification), bundled investment offerings might. This approach mirrors Japan's "transaction-based" framework rather than Singapore's asset-focused model—a compromise that could preserve innovation while capturing 【89%】 of problematic offerings.

The Coming Regulatory Milestones

SEC Chair Paul Atkins promised Congress a comprehensive crypto report by Q3 2025, potentially incorporating Peirce's transaction-centric philosophy. As decentralized finance protocols now handle 【$210 billion】 in assets, the guidance could determine whether the U.S. maintains its 【38%】 share of global crypto development—or loses ground to more agile jurisdictions.

——Industry analysts suggest—— the final rules may resemble traditional securities laws with blockchain-specific amendments, rather than creating entirely new frameworks. This measured approach aims to satisfy both Wall Street institutions and crypto natives as tokenization reshapes capital markets.