Securitize Capital took a major step forward by registering as an SEC investment adviser on July 22, enabling the firm to manage assets without previous limits. The company oversees more than $5 billion, including a $2.6 billion tokenized Treasury fund from BlackRock, yet its parent stock SECZ lost nearly 10% in Monday trading, falling to $6.76 and bringing Securitize’s market value down to roughly $1 billion.
SEC Registration Broadens Securitize’s Compliance Responsibilities
Prior to this change, Securitize Capital operated as an exempt reporting adviser in Florida since March 2023, restricted to advising only venture capital funds or private funds with under $150 million in US assets under management. Full SEC registration removes these caps but comes with increased obligations around disclosure, compliance, recordkeeping, and examinations under the Investment Advisers Act of 1940. CEO Carlos Domingo described this milestone as key to expanding Securitize’s regulated platform and working with institutional investors who seek partners experienced with tokenization and regulatory frameworks.
The Growing Regulatory Ecosystem Around Tokenized Assets
Securitize’s registration complements its existing regulated units: Securitize Markets, an SEC-registered broker-dealer operating an SEC-regulated alternative trading system, along with affiliates providing transfer-agent and fund-administration services. FINRA’s recent approval of Securitize Markets to custody tokenized securities and enable atomic settlement strengthens its operational capacity. This expanded regulatory infrastructure enables closer collaboration with asset managers developing onchain vaults, lending products, and sophisticated portfolio strategies. Securitize’s growing presence reflects broader regulatory attention, highlighted by SEC Commissioner Hester Peirce’s July 22 caution about vault management and lending strategies potentially triggering adviser duties.
