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.
SEC Chairman Paul Atkins stated that blockchain technology could support “a wide range of innovative use cases for securities” and promote “new forms of market activity that many of the Commission’s existing rules and regulations do not currently address.”
During his keynote speech at the Commission’s May 12 roundtable on tokenization and digital assets, Atkins welcomed a “new era at the SEC” and emphasized that “ad hoc enforcement actions will no longer be the basis for policymaking.” Instead, he said the Commission would use its existing rulemaking, interpretive, and exemptive powers to create tailored regulatory standards for market participants.
The SEC will focus on developing a coherent regulatory framework for crypto asset markets, aiming to establish clear guidelines for issuing, holding, and trading digital assets. At the same time, the agency will continue working to prevent unlawful behavior by bad actors.
Atkins noted that the Commission will focus on creating “clear and reasonable guidelines” for crypto assets that may qualify as securities. He also emphasized efforts to help brokers expand their platforms to include a broader range of investment offerings, including those that combine securities and non-securities.
Atkins’ strategy marks a departure from former SEC Chair Gary Gensler’s approach, which certain industry stakeholders criticized for relying on a “regulation by enforcement” model of oversight.
The Transformation of Securities
Atkins compared the tokenization of securities to the evolution of audio formats—from vinyl records to cassettes and eventually to digital software—emphasizing that each technological shift enhanced compatibility and interoperability across devices and applications. He noted that this progression led to the rise of streaming content business models, which, in his view, “significantly benefited consumers and the American economy.”
The convergence of traditional finance and the crypto sector continues to drive exploration into securities tokenization. Asset management firms like BlackRock and Franklin Templeton have already launched tokenized U.S. treasury funds, including BUIDL and BENJI. Meanwhile, Robinhood is considering developing a blockchain platform that would allow European retail investors to trade tokenized U.S. securities.
Firms and brokerages may pursue tokenized securities due to benefits like faster settlement times, reduced reliance on traditional financial systems, and improved accessibility. Additionally, they view tokenization as a promising way to bring liquidity to asset classes that have historically been illiquid.
Data from RWA.xyz shows that real-world assets recorded onchain have reached a total of $22.6 billion, marking a 7.6% increase over the past 30 days. This total excludes stablecoins, which are often backed by real-world assets like treasury bills. As of May 12, stablecoins collectively hold a market capitalization of $243 billion, according to DefiLlama. Tether’s USDt alone accounts for $150.6 billion of that amount.
