The U.S. Securities and Exchange Commission (SEC) hosted its fourth Crypto Task Force Roundtable on May 12, 2025, focusing on "Tokenization: Moving Assets Onchain—Where TradFi and DeFi Meet." The event brought together key industry leaders and regulators to discuss the integration of traditional finance (TradFi) with decentralized finance (DeFi) through asset tokenization.

Key Highlights from the Roundtable.

Regulatory Shift Announced: SEC Chair Paul Atkins introduced a new regulatory approach, moving away from enforcement-led actions towards establishing clear rules for digital asset issuance, custody, and trading. This marks a significant departure from previous strategies, aiming to provide clarity and support for innovation in the crypto space.

Tokenization at the Forefront: The roundtable emphasized the potential of tokenization to enhance liquidity, transparency, and market access. Discussions centered on how on-chain asset migration can bridge the gap between TradFi and DeFi.

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Custody and Compliance:

Panelists explored the complexities of crypto custody, debating whether existing definitions of "qualified custodian" under investment adviser rules are adequate for digital assets. The need for a crypto-specific custody framework was also highlighted.

Industry Participation:

The event featured representatives from major financial institutions, including BlackRock and Nasdaq, indicating a growing institutional interest in the tokenization of assets.#CryptoRoundTableRemarks