A shift from an enforcement-first approach to more defined rulemaking was indicated by SEC Chair Paul Atkins during the Commission’s roundtable held on May 12.
It was stated by Securities and Exchange Commission (SEC) Chairman Paul Atkins that blockchain technology could be utilized to support “a wide range of innovative use cases for securities” and encourage “new forms of market activity that are not currently addressed by many of the Commission’s existing rules and regulations.”
During his keynote speech at the Commission’s May 12 roundtable on tokenization and digital assets, a “new era at the SEC” was welcomed by Atkins, who emphasized that “ad hoc enforcement actions will no longer be the basis for policymaking.” Instead, it was stated that the Commission’s existing rulemaking, interpretive, and exemptive powers would be employed to establish tailored regulatory standards for market participants.
A central focus will be placed on the development of a coherent regulatory structure for crypto asset markets, aimed at establishing clear guidelines for the issuance, custody, and trading of digital assets, while ongoing efforts will be made to deter unlawful behavior by bad actors.
It was noted by Atkins that specific attention would be directed toward the creation of “clear and reasonable guidelines” for crypto assets that might qualify as securities. Additionally, efforts would be concentrated on enabling brokers to provide a wider array of investment offerings on their platforms, including those that may involve a combination of securities and non-securities.
A departure from the approach taken by former SEC Chair Gary Gensler has been marked by Atkins’ strategy, as Gensler’s tenure was criticized by certain industry stakeholders for relying on a “regulation by enforcement” model of oversight.
The Transformation of Securities
The tokenization of securities was compared by Atkins to the transformation of audio formats—ranging from vinyl records to cassettes and eventually to digital software—emphasizing how each technological shift improved compatibility and interoperability across various devices and applications. This evolution was noted to have led to the emergence of streaming content business models, which, according to him, “significantly benefited consumers and the American economy.”
The topic of securities tokenization continues to be explored at the convergence of traditional finance and the crypto sector. Tokenized U.S. treasury funds, such as BUIDL and BENJI, have already been launched by asset management firms like BlackRock and Franklin Templeton. Meanwhile, the development of a blockchain platform to enable European retail investors to trade tokenized U.S. securities is being considered by Robinhood.
Interest in tokenized securities may be drawn from firms and brokerages because of advantages such as quicker settlement periods, diminished dependence on conventional financial systems, and enhanced accessibility. Additionally, tokenization is viewed as a potential method for introducing liquidity to asset categories that have traditionally remained illiquid.
According to data from RWA.xyz, a total of $22.6 billion in real-world assets has been recorded onchain, reflecting a 7.6% increase over the last 30 days. This figure does not account for stablecoins, which are frequently backed by real-world assets such as treasury bills. As of May 12, stablecoins hold a combined market capitalization of $243 billion, based on statistics from DefiLlama. Tether’s USDt alone is reported to have a market cap of $150.6 billion.
