SEC Chair Says Blockchain Could Completely Revolutionize the Market (But Will It?)

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Blockchain technology, my dear friends, could be the ticket to a world of “novel use cases for securities,” or so says the charming Securities and Exchange Commission (SEC) Chairman, Paul Atkins. This innovation could bring forth “new kinds of market activities” that, let’s be honest, most of the Commission’s old-school rules are as clueless about as your grandma on TikTok. 🍿

During his keynote address at the Commission’s May 12 roundtable, where crypto and tokenization were hot topics, Atkins grinned and declared it was “a new day at the SEC.” The days of impulsive, knee-jerk policymaking are over—now, the Commission plans to use its fancy “existing rulemaking, interpretive, and exemptive authorities” to set “fit-for-purpose standards” for market participants. Sounds fancy, doesn’t it? Maybe they should just stick to a crystal ball instead. 🔮

One of the big priorities, of course, is creating a “rational regulatory framework” for the crypto asset market. It’ll set clear rules, or so they hope, for everything from issuing to trading crypto assets. All while, naturally, discouraging bad actors from breaking the law. Because who wouldn’t want clear rules, right? Maybe one day we’ll even understand all of it. 🤷‍♂️

Now, Atkins isn’t alone in his mission. He’s determined to craft “clear and sensible guidelines” for crypto assets that might just be securities. A lovely thought. And, let’s not forget, he wants to allow brokers to offer a wider range of investment products. Some might even combine securities and non-securities. It’s all getting a bit… “experimental,” don’t you think?

But wait, Atkins’ approach is rather a departure from the one of former SEC Chair Gary Gensler. You remember Gensler, right? The one who thought “regulation by enforcement” was the best way to run the show. Yeah, people didn’t love that method, but who’s counting? 😏

Securities Evolution

Atkins made an analogy that would make any audiophile proud. Tokenization of securities is like the evolution of audio formats—from vinyl to cassette tapes to digital software. Each step, he claims, made everything more compatible, more interoperable. Eventually, it gave birth to streaming content models that, surprise, benefited both consumers and the economy. You hear that, Spotify? 😎

Of course, tokenizing securities is still a hot debate between traditional finance and crypto enthusiasts. Big names like BlackRock and Franklin Templeton are already on board with their respective tokenized US treasury funds. Even Robinhood is considering building a blockchain to let European retail investors get in on the tokenized action. Oh, the times, they are a-changin’!

What’s so great about tokenized securities? Well, let’s see. Faster settlement times, less reliance on old-school financial infrastructure, and the holy grail—improved accessibility. Not to mention, tokenization could inject liquidity into those poor, illiquid asset classes that have been begging for some attention. Everyone loves liquidity, right?

According to RWA.xyz, a staggering $22.6 billion in real-world assets are now on the blockchain. That’s a 7.6% rise in just 30 days, for those who are keeping score. And, hold your breath, that doesn’t even include stablecoins—those cheeky little things backed by real-world assets like treasury bills. As of May 12, stablecoins boast a whopping $243 billion market capitalization. Tether’s USDt (USDT) alone claims $150.6 billion. It’s a digital gold rush, folks!

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2025-05-13 02:24