SEC Commissioner: Rules Shouldn’t Create Unnecessary Barriers to Tokenization
SEC Commissioner Mark T. Uyeda said the U.S. Securities and Exchange Commission should avoid imposing unnecessary regulatory barriers as tokenization technology evolves. Speaking at an asset management derivatives forum, Uyeda noted tokenized securities have moved from theory to early practice, with market participants testing issuance, custody and transfer of traditional securities on-chain. He emphasized that tokenized securities remain subject to securities laws — disclosure, custody and investor protections still apply — and that the SEC’s role is to adapt existing rules to a blockchain environment rather than create parallel rules for crypto-native assets. Uyeda reiterated a technology-neutral stance focused on regulatory outcomes over specific processes and cited a recent exemption request under the Investment Company Act as evidence that tokenization is becoming real-world practice. Keywords: SEC, tokenization, securities law, custody, disclosure, technology-neutral.
Neutral
The announcement is neutral for crypto markets. Uyeda affirmed that tokenization is progressing into practical use, which is constructive for long-term industry maturation and could expand on-chain liquidity and product innovation. However, he also stressed that tokenized securities remain fully subject to existing securities rules (disclosure, custody, investor protection). That reinforces regulatory certainty but signals compliance burdens and oversight will continue. In the short term this likely produces little price movement — the message is neither a liberalization nor a crackdown. In the medium to long term, clearer adaptation of securities law to tokenization can be bullish by enabling institutional issuance and custody solutions, but only if compliance costs and legal constraints are manageable. Historical parallels: public comments by regulators clarifying rules (rather than issuing harsh enforcement actions) tend to calm markets and support steady development rather than abrupt rallies. Traders should watch for concrete rule adaptations, enforcement actions, or exemptions (like the mentioned Investment Company Act filing) which could shift sentiment more materially.