The SEC is considering an innovation exception that would allow the organization to regulate the mass tokenization of assets and a larger digital volume.
Chairman Paul Atkins said that the agency is seriously considering introducing some regulatory changes to encourage blockchain-based securities.
Atkins told reporters that the SEC is considering an innovation exception that would enable tokenized assets. He mentioned that employees are analyzing ways to promote a tokenized infrastructure with new exemptions and trading methods. His comments came after the House passed a stablecoin bill, the GENIUS Act, to update digital finance.
Push Toward Blockchain-Based Securities
Atkins stressed that asset tokenization is a trend rather than a passing phenomenon. Noting that anything that can be tokenized will be tokenized, he indicated that conventional finance is slowly migrating onto blockchain tracks. The big financial players have already expressed interest in tokenizing stocks and shares of privately held companies.
According to him, the SEC is amending the rules to enable specific exceptions that would facilitate wider use of tokenized securities. Atkins seemed confident that electronic railings would be pillars of the capital markets of the future.
GENIUS Act Gains Bipartisan Support
Over 100 House Democrats voted in favor of the GENIUS Act, which was appreciated by both parties. According to the bill, stablecoin issuers must maintain reserves at an equal value in short-term government securities or other similar regulated assets. Emilie Choi, the President of Coinbase, described the bipartisan support as a great milestone.
Atkins referred to the bill as a historic measure toward the U.S.’s leadership in digital assets. According to him, the legislation provides a high degree of market transparency and risk controls. Before the end of the week, Trump is supposed to sign the bill into law.
Not everyone was in support, as some Democrats had reservations. Senator Elizabeth Warren criticized the bill as not going far enough to safeguard consumers. Others questioned former President Trump’s financial links to different crypto projects.
New Direction Under Atkins
Atkins’s course has significantly changed from the policies made by the past Chair, Gary Gensler. He intends to amend digital asset custody regulations and ease registration procedures for crypto assets. The SEC is also considering revising the definition of qualified custodians and is likely to issue additional exemptions as the current state of the market requires.
He advocates redesigning its special-purpose broker-dealer design. Atkins added that regulated firms ought to be able to provide a combination of securities and non-securities. He emphasized the need for durable regulatory regulations and that the agency does not have to wait for an act in Congress before taking action.
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