The U.S. Securities and Exchange Commission’s Investor Advisory Committee voted to back a tokenized-securities policy and outlined how the rules should proceed to regulate stock transactions on blockchains. The move emphasizes mandatory disclosures and investor protections alongside new on-chain settlement approaches. The committee urged narrow exemptions for blockchain-based trading, conditional on mandatory disclosures, routine outside supervision and a requirement that tokenized-equity orders receive best-terms for all investors.
Chairman Paul Atkins noted tokenized assets still meet the definition of securities, requiring safeguards parallel to the traditional system. He said the agency is progressing toward formal regulations on tokenization, a plan now backed by the committee’s recommendation. The document describes on-chain delivery and payment as potentially single transactions with ownership records embedded on a blockchain, while warning of new risks and higher costs. Atkins praised the committee’s recognition that tokenization can improve settlement efficiency and reduce risk, and he signaled that the Commission may soon consider an innovation exemption to support limited trading while developing a long-term regulatory framework.
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