U.S. and UK regulators have moved to sharpen oversight of digital assets, issuing new guidance on tokenization while accelerating sanctions and advertising enforcement tied to crypto markets. In the United States, the Securities and Exchange Commission released staff guidance clarifying that assets tokenized on blockchains remain securities if they meet existing legal definitions, regardless of their onchain format. The statement emphasized that tokenization does not alter core obligations under federal securities laws and outlined two broad structures: issuer-sponsored tokenization and third-party tokenization. Regulators warned that third-party tokenized representations may introduce additional counterparty and insolvency risks, increasing disclosure and compliance requirements for issuers and intermediaries. The guidance signals a push to bring tokenized products firmly within existing regulatory perimeters as institutional interest in blockchain-based securities grows.
In the United Kingdom, enforcement efforts are also intensifying. The Office of Financial Sanctions Implementation has updated its sanctions framework to speed up investigations, introduce clearer penalty calculations, and encourage early cooperation from firms. Authorities said the changes are designed to improve transparency and accelerate enforcement outcomes, particularly as cryptoassets are increasingly scrutinized for potential sanctions evasion. UK agencies have also launched coordinated efforts targeting illicit crypto use, reinforcing expectations that digital assets will be treated no differently than traditional currencies under sanctions law. The shift reflects a broader move toward operational, intelligence-led compliance, raising the stakes for crypto firms operating across borders or interacting with high-risk jurisdictions.
Regulators are simultaneously tightening standards for consumer-facing crypto marketing. The UK Advertising Standards Authority recently banned a series of advertisements from Coinbase, ruling that the ads downplayed risks and implied crypto could ease cost-of-living pressures. While not a court action, the decision underscores heightened scrutiny of how digital asset services are promoted to retail audiences. Together with recent U.S. court rulings, including a Ninth Circuit decision affirming dismissal of certain federal securities claims against Ripple on statute-of-limitation grounds, the developments point to a regulatory environment focused on clearer classification, faster enforcement, and stricter consumer protections. For crypto markets, the message is increasingly consistent: innovation will be allowed, but within tighter and more clearly enforced rules.
