ASA Submits Comments to SEC on Corporate Governance and Tokenization of Equities

WASHINGTON – The American Securities Association (ASA) today released comments submitted to the Securities and Exchange Commission's (SEC) Investor Advisory Committee (IAC) as it considers regulatory changes in corporate governance and the tokenization of equities. 

"ASA applauds the SEC for taking action to de-politicize the U.S. proxy system and to create regulatory guardrails around the future of financial services in a way that prioritizes the interests of America's working families, savers, and retirees," said ASA President and CEO Chris Iacovella.

"As the IAC considers potential recommendations to the SEC regarding tokenization, it is essential to identify and address any emerging gaps in regulation that could occur if regulatory oversight fails to keep up with the pace of innovation," Iacovella wrote. "The SEC must ensure all regulated entities in this space are subject to the same set of standards and rules, and that unregulated actors are not permitted to perform the same tasks as regulated entities."

ASA also urged the IAC to withdraw its draft recommendation regarding AI disclosure. "Chairman Atkins also emphasized the critical importance of the materiality standard which continues to guide corporate disclosure," Iacovella wrote. "The type of prescriptive, one-size-fits-all disclosure envisioned by the draft recommendation, typically leads to large volumes of disclosures that are not material to making an investment decision."

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.