The Executive’s Guide to Security Tokens: Compliance, Custody, and Capital Formation

Key Summary Regulatory Status: Under 2026 guidance, tokens are Digital Securities. Compliance is based on “economic reality,” requiring strict adherence to federal laws for distribution, KYC/AML, and reporting. Programmable Compliance: Tokenization allows transfer restrictions and eligibility gating to be baked into the asset layer. Success requires an automated, “audit-ready” model rather than a one-time checkbox. […]