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CoinTelegraph 2025-05-12 21:43:11

SEC Chair: Blockchain 'holds promise' of new kinds of market activity

Blockchain technology could enable “a broad swath of novel use cases for securities” and foster “new kinds of market activities that many of the Commission’s legacy rules and regulations do not contemplate today,” Securities and Exchange Commission (SEC) Chairman Paul Atkins said . During his keynote address at the Commission’s May 12 roundtable on tokenization and digital assets, Atkins welcomed “a new day at the SEC,” adding that “policymaking will no longer result from ad hoc enforcement actions. Instead, the Commission will utilize its existing rulemaking, interpretive, and exemptive authorities to set fit-for-purpose standards for market participants.” Source: U.S. Securities and Exchange Commission A key priority will be to “develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law.” In particular, Atkins said the SEC would focus on establishing “clear and sensible guidelines” for crypto assets that could be considered securities. Another area of focus would be to allow brokers to offer a broader range of investment products on their platforms, which in some cases may mix securities and non-securities. Atkins’ approach moves away from former SEC Chair Gary Gensler’s, whose tenure was criticized by some industry participants for its “regulation by enforcement” method of oversight. Securities evolution Atkins likened the tokenization of securities to the evolution of audio formats — from vinyl to cassettes to digital software — highlighting how each shift enhanced compatibility and interoperability across a wide range of devices and applications. This progression eventually gave rise to streaming content business models, which he said “greatly benefited consumers and the American economy.” SEC's Crypto Task Force Roundtable on May 12. Source: SEC Securities tokenization is an ongoing topic at the intersection of traditional finance and crypto. Some asset management firms, like BlackRock and Franklin Templeton, have already jumped into tokenization through their respective BUIDL and BENJI tokenized US treasury funds. Robinhood is considering building a blockchain to allow European retail investors to trade tokenized US securities. Tokenized securities may attract interest from firms and brokerages due to features such as faster settlement times, reduced reliance on traditional financial infrastructure, and improved accessibility. Tokenization may also help provide liquidity to asset classes that have historically been illiquid. According to RWA.xyz, $22.6 billion of real-world assets are onchain, a 7.6% rise in the past 30 days. That doesn’t include stablecoins, which are often backed by real-world assets like treasury bills. Stablecoins have a $243 billion market capitalization as of May 12, according to data from DefiLlama. Tether’s USDt ( USDT ) alone has a market cap of $150.6 billion. Magazine: SEC’s U-turn on crypto leaves key questions unanswered

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