Tokenization Gains Momentum as SEC Offers Guidance
The tokenization of assets is gaining traction beyond social media platforms. Major players like Kraken and Robinhood now let users trade tokenized stocks.
Bitwise’s matt Hougan calculates that assets worth $257 trillion could be tokenized. This potential market remains largely untapped. Regulators are taking notice. SEC Chairman paul Atkins backs the concept, labeling it an innovation. though, colleague Hester Peirce warns of “unique risks.”
Hester Peirce weighed in via a July 9, 2025, SEC post, “Enchanting but Not Magical.” she clarified that tokenized securities are still subject to securities laws. Blockchain technology changes the format, not the legal status of securities.
- Entities not issuing securities sometimes tokenize them.
- This introduces counterparty risks.
- Distributors must disclose these risks clearly.
Peirce called for collaborative efforts between market participants and the SEC. Her approach contrasts with Gary Gensler,who viewed most cryptocurrencies as unlicensed securities.
