The U.S. Securities and Exchange Commission (SEC) has clarified the classification of tokenized securities, categorizing them into issuer-sponsored and third-party sponsored types. Issuer-sponsored tokenized securities will be treated similarly to traditional securities, ensuring they adhere to existing regulatory frameworks. In contrast, third-party sponsored tokenized securities may not grant holders rights to the underlying assets and could be classified and regulated as security-based swaps, depending on their structure and function.