Blockchain technology could allow “a wide band of new use cases for securities” and promote “new types of market activities that many rules and regulations inherited from the Commission do not consider today,” said Securities and Exchange Commission (SEC), Paul Atkins.
During his opening speech during the May 12 round table on tokenization and digital assets, Atkins welcomed “a new day to the dry”, adding that “the development of policies will no longer result from the application of the ad hoc law.
A key priority will be to “develop a rational regulatory framework for the markets of cryptographic assets which establishes clear rules of the road for issuing, custody and trade in cryptographic assets while continuing to discourage bad players from raping the law”.
In particular, Atkins said that the SEC would focus on the establishment of “clear and sensible directives” for cryptographic assets which could be considered as titles. Another area of interest would be to allow brokers to offer a wider range of investment products on their platforms, which, in some cases, can mix titles and non-security.
Atkins’ approach moves away from the former SEC president, Gary Gensler, whose mandate has been criticized by certain industry participants for his “law regulation” method.
Evolution of securities
Atkins compared the tokenization of titles to the evolution of audio formats – from vinyl to cassettes to digital software – emphasizing how each lag improved compatibility and interoperability through a wide range of devices and applications. This progression finally gave birth to trade models of streaming content, which, according to him, “greatly benefited consumers and the American economy”.
The tokenization of titles is a continuous subject at the intersection of traditional finance and crypto. Certain asset management companies, such as Blackrock and Franklin Templeton, have already jumped into the tokenization by their respective US cash funds. Robinhood plans to build a blockchain to allow European retail investors to exchange token American titles.
Tokenized securities can arouse the interests of companies and brokerage houses due to characteristics such as faster settlements, a reduction in dependence on traditional financial infrastructure and an improvement in accessibility. Tokenization can also help provide liquidity to asset classes that have historically been illiquid.
According to Rwa.xyz, $ 22.6 billion in active world active are on the increase of 7.6% in the last 30 days. This does not include stablecoins, which are often supported by real assets such as cash bills. Stablecoins have a market capitalization of 243 billion dollars on May 12, according to Defilma data. The USDT of Tether (USDT) has a market capitalization of $ 150.6 billion.
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