The Securities and Exchange Commission (SEC) is willing to work with companies looking to tokenize assets, Commissioner Hester Peirce said today (Tuesday), though she emphasized the regulator is still grappling with how blockchain-based securities interact with their traditional counterparts.
SEC Signals Openness to Tokenized Securities Issuers
"We are willing to work with people who want to tokenize, we urge them to come talk to us," Peirce said during a virtual appearance at the Digital Assets Summit in Singapore.
The comments reflect a shift in regulatory tone under the current administration, with Peirce pointing to practical questions the SEC faces as more firms move assets onto blockchain networks. Tokenized securities represent ownership or rights in underlying assets like stocks or bonds through digital tokens, meaning the same security can exist simultaneously as paper certificates, electronic records, and blockchain-based tokens.
"Some of the questions are how does a tokenized security interact with other iterations of the security and other forms of that security," Peirce said. She added that the regulatory approach depends on how tokenization is structured, noting "depending on how things are tokenized, it could be one of many different things."
Financial Institutions Drive Adoption
The tokenization market has drawn interest from major financial institutions seeking to improve liquidity and operational efficiency. The sector currently holds a market value of $31 billion, with tokenized stocks accounting for $714 million of that total, according to data from RWA.xyz.
McKinsey analysis projects the market capitalization of tokenized assets could reach around $2 trillion by 2030, excluding cryptocurrencies like Bitcoin and stablecoins. That forecast represents growth primarily in mutual funds, bonds, exchange-traded notes, loans and securitization products.
Peirce, a Republican commissioner known for her support of cryptocurrency innovation, has been advocating for clearer rules around digital assets. Earlier this year, she endorsed a regulatory sandbox approach for tokenized securities, allowing firms to test new models under conditional exemptions.
Crypto Exchanges Push Into Traditional Assets
The regulatory opening comes as crypto-native platforms aggressively expand into traditional financial products. Exchanges like Bybit, Kraken, and Coinbase have secured MiFID II licenses in Europe, positioning themselves to offer stocks, forex, and commodities alongside digital assets.
Bybit introduced 24/5 stock CFD trading earlier this year through its TradFi platform, covering over 100 equities including Apple, Tesla, and Nvidia. The exchange said its Gold & FX product surpassed $24 billion in daily trading volume, demonstrating demand for unified platforms that blend crypto and traditional markets.
Kraken acquired NinjaTrader, a regulated US futures broker, and launched FX perpetual contracts in April. The moves signal what industry observers describe as crypto platforms "coming for it all" in traditional finance.
"Investors are looking for opportunities, and some legacy barriers between emerging and traditional financial markets are only artificial," Bybit CEO Ben Zhou said when announcing the company's expansion into traditional assets.
The convergence works both ways. MultiBank Group, a forex and CFD broker, partnered with Dubai-based MAG on a $3 billion real estate tokenization project after securing a license from the Virtual Assets Regulatory Authority. The deal represents the first phase of a platform expected to scale to $10 billion in tokenized assets.
Traditional Brokers Face Pressure
The shift has created challenges for conventional CFD and forex brokers, many of which remain dependent on MetaTrader platforms that lack blockchain integration. Industry analysts note that crypto exchanges bring advantages in technology, user experience, and global reach that legacy brokers struggle to match.
"99% of brokers still rely on MetaQuotes (MT4/MT5)—delivering nearly identical products, pricing, and UX," according to analysis published by FinanceMagnates.com. "For MetaQuotes-dependent brokers, pivoting to crypto isn't a tweak—it's a full rebuild."
eToro stands as a notable exception among traditional platforms. The multi-asset broker reported that 38% of its $931 million in total commissions during 2024 came from crypto trading alone, with net profit jumping to $192 million from $15.3 million the previous year.
Regulatory Framework Takes Shape
The SEC has held multiple roundtables this year focused on tokenization as part of its Crypto Task Force initiative. In May, the agency convened representatives from traditional financial institutions, exchanges, asset managers and decentralized finance platforms to examine regulatory and operational issues.
The roundtables follow years of what some market participants described as an unclear regulatory environment. Peirce and other commissioners have pushed for greater clarity on how existing securities laws apply to blockchain-based assets.
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This article was written by Damian Chmiel at www.financemagnates.com.
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