Blockchain’s Potential in Market Regulation: SEC Chairman Paul Atkins’ View

Jakarta, Pintu News – The Chairman of the United States Securities and Exchange Commission (SEC), Paul Atkins, expressed his views on blockchain technology and its impact on financial markets. In his speech at the SEC’s roundtable event on 12 May 2025, Atkins emphasized that blockchain has the potential to create new forms of market activity that are not yet covered by current regulations.

SEC’s New Approach to Crypto Assets

Atkins stated that the new era at the SEC will focus on policymaking that no longer relies on ad hoc enforcement actions. Instead, the SEC will utilize its existing authority to set appropriate standards for market participants.

The top priority is to develop a rational regulatory framework for the crypto asset market, by establishing clear rules for the issuance, storage, and trading of crypto assets, while continuing to prevent lawlessness by irresponsible actors.

Atkins also highlighted the importance of establishing clear and reasonable guidelines for cryptoassets that can be considered securities. In addition, he supported the expansion of investment products that brokers can offer, including those that combine securities and non-securities. This approach differs from the policies of his predecessor, Gary Gensler, who was often criticized for supervisory methods that relied on law enforcement.

Also Read: Bitcoin Approaches Rp1.74 Billion: Trend Analysis and Challenges May 2025

Securities Evolution through Tokenization

In his speech, Atkins compared the tokenization of securities to the evolution of audio formats from vinyl records to cassettes to digital software. Each change increases compatibility and interoperability across different devices and applications, ultimately resulting in a streaming content business model that benefits consumers and the American economy.

The tokenization of securities is a growing topic at the intersection of traditional finance and crypto. Some asset management firms, such as BlackRock and Franklin Templeton, have engaged in tokenization through tokenized US treasury funds. Robinhood is also considering building a blockchain that would allow European retail investors to trade tokenized US securities.

Benefits and Challenges of Tokenization

Tokenization of securities can be attractive to companies and brokers due to features such as faster settlement times, reduced reliance on traditional financial infrastructure, and increased accessibility. In addition, tokenization can help provide liquidity for asset classes that were previously difficult to liquidate.

However, the adoption of these technologies also faces challenges, including the need for a clear regulatory framework and consistent standards. Atkins emphasized that the SEC will work to overcome these obstacles by setting appropriate guidelines and supporting responsible innovation in the digital finance sector.

Conclusion

SEC Chairman Paul Atkins’ statement marks a significant shift in the regulatory approach to blockchain technology and crypto assets. With a focus on clear policymaking and supporting innovation, the SEC seeks to create an environment conducive to the growth of digital financial markets, while still protecting investors and maintaining market integrity.

Also Read: 3 Altcoins that Catch Analysts’ Attention Amid Positive Market Sentiment: Significant Growth!

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Christopher Tepedino / Cointelegraph. SEC Chair: Blockchain ‘holds promise’ of new kinds of market activity. Accessed May 13, 2025
• Featured Image: San.com