TOKENIZATION MISUNDERSTANDING
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Tokenization could be misunderstood. The SEC discussed about the Tokenization in Crypto Round Table Meeting on 12/5/2025. The US Securities & Exchange Commission was established in 1934. Its primary purpose is to enforce laws against Market Manipulation. SEC Commissioner Paul S Atkins pointed out that tokenization could be misunderstood or misapplied. It is interpreted different from person to person, so it is not well defined. Its definition is crucial for regulatory clarity.
The definition of tokenization - It refers to the process of breaking down a stream of text or data into smaller units called tokens. These tokens can be words, sentences, symbols, or other meaningful elements.
Other interpretation is - A sensitive data is replaced with a unique, non-sensitive substitute called a token.
It secures sensitive data like credit card number, with non-sensitive surrogate values (tokens). It doesn't respond when compromised or manipulated. Tokens can maintain the original data's length and format (data integrity) and ensures compatibility with existing system.
Focus - They (SEC) have to seek input 🔠 from market participants for Transparency in new markets. At present, the market of Pi Coins is not transparent 🪟, regarding KYC, Recovery of wallet and Seed Phrase and mining. There are many fake 🤥 sites and mining projects. It is a mere example quoted.
There should be proper liquidity through Small Contacts. They asserted - There should be a rational regulatory framework to facilitate the migration to blockchain of securities.
Paul Atkins promises changes in SEC - Current regulation is not enough to assess how blockchain works, and how tokenization helps in making liquid asset.
He announced to develop a national regulatory framework for crypto asset markets making rules for the issuance, custody and trading of crypto assets. He assured to build a safe net 🥅 to protect the traders from scammers and hackers.
Conclusion : #CryptoRoundTableRemarks
