Are tokenized stocks regulated by the SEC?

Tokenized stocks—digital representations of real company shares—fall under SEC jurisdiction. The SEC treats them as securities, meaning they must comply with federal securities laws. If a platform offers tokenized stocks, it typically needs to be a registered broker-dealer or use a qualified custodian. Currently, few platforms offer fully SEC-compliant tokenized stocks because regulatory frameworks are still developing. Some platforms operate in gray areas or focus on unregulated markets. Investors should verify that any tokenized stock offering comes from a registered entity. The SEC has been cautious about approving tokenized securities, prioritizing investor protection over innovation in this emerging space.