The Securities and Exchange Commission Chair, Paul Atkins, said they are considering a regulatory exception to encourage tokenization. He told reporters, “Staff is considering what other changes may be appropriate to incentivize tokenization within our regulatory framework, including an innovation exception.” His remarks came shortly after the House passed the GENIUS Act—a key stablecoin bill—on Thursday. Atkins welcomed the move, emphasizing the SEC’s commitment to offering clearer guidance for the digital asset industry. The SEC chair claimed that assets will eventually be tokenized According to Atkins, they are exploring rule alterations to allow new trading methods and more targeted exemptions to support the development of a broader tokenized securities infrastructure. Several financial institutions have already shown interest in tokenizing major US stocks, and some have even hinted at developing tokenized products of private firms. While the future remains uncertain, Atkins argued that shifting assets onto blockchain rails is clearly inevitable, adding, “So if it can be tokenized, it will be tokenized.” He also talked about the recently approved stablecoin bill, hailing it as a “historic step” toward establishing the US as the global leader in crypto. He stated that he’s looking forward to seeing the market leverage the legislation provides while maintaining robust risk standards. Other backers of the bill have claimed it could enable quicker, lower-cost payments and bring credibility to the $265 billion stablecoin industry, which Citigroup analysts estimate could balloon to $3.7 trillion by 2030. Still, some Democrats like Senator Elizabeth Warren argue the legislation doesn’t go far enough in shielding consumers. House Democrats who opposed the bill cited concerns over President Trump’s involvement with crypto assets. According to Blomberg, Trump and his family have received $620 million from their crypto ventures, including the World Liberty Financial project, the TRUMP and MELANIA meme coins, and a 20% stake in American Bitcoin. The bill, however, had over 100 democrats vote in favor of it. Emilie Choi, Coinbase’s President, even described it as a giant milestone to have massive bipartisan support to advance stablecoins and market structure. The legislation stipulates that firms will hold equivalent dollar reserves in short-term government bonds or similar assets subject to state or federal oversight. It is set to reach Trump’s desk before the end of the week, where he is expected to sign it into law. Atkins had stated he would remove some of Gensler’s policies Paul Atkins has charted a distinctly different course on crypto from his predecessor, Gary Gensler, who critics say tried to govern the sector through enforcement. Atkins has previously expressed his intention to unwind key Gensler-era policies, including the rule allowing brokers to act as digital asset custodians. In May, he said the agency will make it easier to register crypto assets by clarifying securities rules. On custody, he said registrants should have more choices for managing and storing customer assets. He signaled the commission would reexamine and define the criteria for “qualified custodians,” while also granting exemptions from current custody requirements to align with common practices in the industry. Atkins also said the framework governing special-purpose broker-dealers is due for an overhaul. He supports allowing registered firms to trade a broader mix of securities and non-securities assets on their platforms. He also emphasized that the agency should work on replacing the existing rules with ones that could last for years. Additionally, he claimed the SEC can proceed without waiting for Congress to approve laws. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
