SEC’s Gensler Issues Warning as Fake Stocks Bloom on Blockchains

Securities and Exchange Commission Chair Gary Gensler has a warning about the synthetic stocks popping up on blockchains: Firms selling the tokens to U.S. investors are likely to end up in trouble with regulators.

In a Wednesday speech, Gensler made clear that tokens that mirror the performance of Amazon.com Inc., Tesla Inc. and other well-known companies are probably still covered by U.S. securities laws. He also pledged to use all the resources in the SEC’s “enforcement toolkit” to go after those who might be offering such assets without registering them.

“It doesn’t matter whether it’s a stock token, a ...