Based on reports, Peirce’s warning came about two weeks after trading app Robinhood unveiled its own layer‑2 blockchain for tokenization. She urged firms to clear their plans with SEC staff before minting tokens tied to stocks or funds.
Market watchers see parallels with former SEC chair Gary Gensler, who often told token projects to “come in and talk” if they might be offering securities.
Peirce did not call out Robinhood by name, but the timing was clear: the company filed a proposal in May to set up a framework for tokenized real‑world assets under US rules.
Robinhood plans to let European users trade tokens tied to US stocks and ETFs, including big names like Apple and the S&P 500 fund.
If it passes, the act could spell out terms for “digital commodities,” “securities” and “stablecoins.” Supporters say it would give tokenization backers a clearer path and reduce legal gray zones.
Tokenized securities could cut settlement times from two days to near‑instant, and open markets for small investors. Yet risks remain. Buyers must trust custodians who hold the actual assets. If a custodian fails, token holders could lose out.
Featured image from Cheesecake Labs, chart from TradingView
