SEC Adopts New Tokenization Approach Under Chair Atkins

The U.S. Securities and Exchange Commission (SEC) has adopted a new approach under Chair Paul Atkins, emphasizing the importance of tokenization in modern markets. This shift marks a departure from the agency’s previous stance under former leadership, as the SEC now views tokenization as a tool to boost market efficiency and transparency.

Chair Atkins, who took office in April, has introduced measures aimed at creating a transparent environment for token-based assets. He stated in an interview that the agency would move away from unclear enforcement tactics, focusing instead on clear guidelines that support innovation. This regulatory softening around digital assets has been ongoing for several months.

Tokenization of real-world assets has seen significant growth, with the total value of tokenized assets, excluding stablecoins, crossing $24 billion. This surge, noted by Binance Research, is largely attributed to the tokenization of US Treasurys and private credit markets. Atkins’ comments align with the SEC’s broader mission to encourage capital formation, helping firms raise funds more efficiently through tokenization.

Recent regulatory updates from the SEC’s Division of Corporation Finance have provided guidance on how companies should disclose digital asset holdings and clarified when tokens fall under securities laws. In June, the SEC approved the first US exchange-traded fund (ETF) tied to crypto staking, launched by REX Shares and Osprey. This ETF allows investors to earn yield through Solana staking, marking a step forward in integrating crypto with traditional finance.

Large institutions have begun exploring tokenization projects. JPMorgan Chase is working on a blockchain-based platform for carbon credit tokenization, involving partnerships with S&P Global Commodity Insights and two major registries. This development signals growing interest in tokenized assets beyond retail markets.

Atkins’ leadership reflects a transition to organized policy and industry cooperation. The SEC has dismissed several suits against crypto companies in recent months, outlining agency-wide efforts to regain the trust of the digital asset market. Under Atkins, the SEC appears focused on creating a clear and fair regulatory framework that supports innovation while maintaining investor protection.

This policy shift is part of a broader effort to simplify regulations and spur innovation within the financial sector. By positioning the U.S. as a leader in the global adoption of blockchain technology, the SEC aims to maintain the country's competitive edge in the global financial markets. This regulatory pivot is expected to have far-reaching implications, paving the way for the development of new financial products and services, and enhancing market efficiency, transparency, and accessibility.