CTF Written Submission

Re: Comment to the SEC Regarding Tokenized Securities

July 1, 2026
  • Tokenized securities offered to retail investors must be backed 1:1 by the actual underlying security, held by a regulated custodian, and subject to regular independent audits.
  • Clear, plain-language disclosure is required to explain exactly what the investor owns and what rights are attached; token holders must receive the same economic rights as ordinary shareholders, including dividends and distributions.
  • Custody, redemption, bankruptcy, and investor-recovery rules must be established before retail trading is allowed, and platforms must be subject to strong market-surveillance, anti-manipulation, cybersecurity, and conflict-of-interest rules.
     

Last Reviewed or Updated: July 2, 2026