On May 12, 2025, the U.S. Securities and Exchange Commission (SEC) held a discussion session on tokenization as part of a series of sessions organized by the committee's digital currency working group.

In this session, the committee's chair, Paul Atkins, emphasized the importance of developing a clear regulatory framework for digital financial markets, stressing the need to update existing rules to accommodate digital assets and tokenization. Atkins noted that the committee has broad authority under current securities laws to clarify rules related to digital assets, including defining exemptions for assets not classified as securities and providing guidance for assets considered securities.

For her part, Commissioner Caroline Crenshaw raised questions about the concept of tokenization and its purpose, wondering whether the committee should facilitate the adoption of blockchain technology in particular, warning that this could be interpreted as government intervention in preferred technology choices.

Commissioner Hester Peirce focused her opening remarks on how tokenization enables the creation of networks for smart assets, noting that digital assets can enhance accessibility and efficiency in financial markets.

This session comes as part of the committee's efforts to provide a clear regulatory environment for digital assets, with a focus on areas of issuance and custody.