The US Securities and Exchange Commission (SEC) now sees tokenization as an “innovation” to be encouraged in the marketplace, according to Chair Paul Atkins, who pointed to a clear regulatory shift since former SEC Chair Gary Gensler’s tenure ended.
“Tokenization is an innovation,” Atkins said in a CNBC interview on Wednesday. “And we at the SEC should be focused on how do we advance innovation in the marketplace.”
Atkins contrasted his approach to crypto regulation with his predecessors, saying the SEC had previously hindered innovation through vague laws and “regulation through enforcement.”
“That day is over,” Atkins said, adding:
“My whole goal is to make things transparent from the regulatory aspect and give people a firm foundation upon which to innovate and come out with new products.”
Atkins was sworn in as SEC chair in April after being nominated by US President Donald Trump on inauguration day. He has been widely recognized for his openness toward cryptocurrency and digital finance, as well as his emphasis on developing a robust regulatory framework for the sector.
Atkins, like others, has recognized the importance of supporting the growing tokenization economy.
Tokenization has emerged as a key driver of crypto adoption, thanks in large part to a more pro-crypto regulatory environment in the United States, according to a recent Binance Research report shared with Cointelegraph.
The World Economic Forum also views tokenization as a promising bridge between traditional financial systems and blockchain, with the potential to reshape global finance.
Excluding stablecoins, the total value of tokenized real-world assets surpassed $24 billion in the first half of the year, with private credit and US Treasurys making up the bulk of the market, according to a report by RedStone.
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SEC makes tangible progress on crypto regulations
Atkins’ favorable view of tokenization aligns with one of the SEC’s longstanding missions — namely, “facilitating capital formation” to help businesses and entrepreneurs create jobs and drive innovation.
The chair’s pro-crypto push, specifically, has been matched by tangible progress on the regulatory front. In April, the SEC’s Division of Corporation Finance issued guidance on company disclosures related to digital assets, aiming to clarify which tokens fall under securities laws.
The regulator also recently approved the first US crypto staking exchange-traded fund (ETF) for Solana (SOL), allowing investors to hold the cryptocurrency and earn yield through staking.
The approved fund, issued by REX Shares and Osprey, debuted on Wednesday.
Large financial institutions are also responding to the pro-industry regulatory shift by prioritizing tokenization as a new business model.
According to Bloomberg, JPMorgan Chase is exploring the tokenization of carbon credits through its Kinexys blockchain unit, in partnership with S&P Global Commodity Insights, the International Carbon Registry and EcoRegistry.
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