Crypto Mom says must by 100% SEC Compliant!!!
On July 9, 2025, SEC Commissioner Hester M. Peirce, affectionately known as “Crypto Mom,” released a statement titled “Enchanting, but Not Magical: A Statement on the Tokenization of Securities.” In it, she reminded the crypto and private markets that while tokenization is innovative, it doesn’t magically exempt anyone from existing federal securities laws.
Highlights from Commissioner Peirce’s Statement
Tokenized Securities Are Still Securities:
Simply wrapping a traditional security in blockchain technology doesn’t change what it is. These tokenized assets still need to comply with the full suite of securities regulations.
Issuer vs. Third-Party Tokenization:
Commissioner Peirce made a clear distinction between tokenization done by an issuer and tokenization done by third parties. Third-party tokenizations—where entities tokenize securities they hold or represent entitlements to—can introduce unique risks for investors.
Openness to Innovation and Modernization:
While emphasizing regulatory compliance, Commissioner Peirce also signaled that the SEC is willing to work with market participants to modernize rules and explore sensible exemptions where technology warrants it. This is an encouraging position from the SEC and one that supports thoughtful innovation.
What This Means for Kore and Our Ecosystem
This message aligns perfectly with the way we’ve approached our mission since day one: empowering and transforming global private markets responsibly. Kore’s infrastructure platform is designed from the ground up to manage digital securities compliantly—including tokenization services.
A Compliance-First Approach:
At Kore, we ensure that tokenized securities offerings meet the requirements of regulations like Regulation A+ and Regulation CF. This means we’re well-positioned to navigate the regulatory landscape that Commissioner Peirce is emphasizing.
Supporting Regulated Intermediaries:
Our platform helps broker-dealers, transfer agents, and other intermediaries stay on top of their compliance obligations when dealing with tokenized securities.
A Seat at the Table:
Commissioner Peirce’s openness to adapting regulatory frameworks gives Kore a real opportunity to engage with regulators, share insights from our work, and help shape a future-ready framework for tokenized securities.
In short, Commissioner Peirce’s statement serves as a timely reminder: tokenized securities must play by the existing rules. But it’s also a positive signal that the SEC recognizes the need to evolve those rules thoughtfully. Kore is ready to help lead that conversation while ensuring full compliance along the way.
