Regulatory Framework
Real estate tokens are typically classified as securities and must comply with applicable regulations. Understanding the regulatory landscape is essential before investing in or issuing tokenized real estate.
REGULATORY INFORMATION DISCLAIMER
The regulatory summaries and frameworks described on this site are for general educational purposes only and do not constitute legal advice. Securities laws and regulations are complex, jurisdictional, and subject to frequent change.
Tokenized real estate may be subject to U.S. federal securities laws, state "Blue Sky" laws, and international regulatory regimes depending on offering structure, investor location, and platform design.
Please consult a qualified securities attorney before relying on any of these descriptions or making legal decisions based on them.
Regulations by Region
Regulatory Guides
International Regulations for Tokenized Real Estate
Overview of regulatory frameworks for real estate tokenization in major jurisdictions outside the United States.
Is Tokenized Real Estate a Security? US Regulations Explained
Is tokenized real estate a security? Understanding SEC regulations, the Howey Test, exemptions (Reg D, Reg A+, Reg CF), and compliance requirements.
Key Regulatory Concepts
Securities Laws
Most real estate tokens are classified as securities under the Howey Test. This means they must be registered with the SEC or qualify for an exemption like Regulation D, Regulation A+, or Regulation CF.
Accredited vs. Non-Accredited Investors
Many tokenized offerings are limited to accredited investors (those meeting income or net worth thresholds). Some exemptions allow non-accredited investor participation with limitations.
AML/KYC Requirements
Platforms must implement Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures to verify investor identity and prevent illicit use of funds.
Transfer Restrictions
Tokenized securities often have transfer restrictions built into smart contracts, limiting who can buy, sell, or hold tokens to ensure ongoing regulatory compliance.
Stay Informed
The regulatory landscape for tokenized securities is evolving rapidly. We recommend:
- Following SEC announcements and guidance
- Consulting with securities attorneys before investing
- Verifying platform registration and compliance
- Understanding holding period requirements