SEC Commissioner Uyeda Says Rules Should Not Hinder Tokenization Progress
Mark T. Uyeda, a Commissioner of the U.S. Securities and platform Commission (SEC) has reportedly urged regulators and market participants to avoid creating unnecessary regulatory barriers to the tokenization of securities as it reaches a stage of real-world application. Uyeda, who was speaking at the , emphasized that existing securities laws can accommodate blockchain tokenization without compromising investor protection, provided they are technology-neutral and outcomes-focused.
The comments come at a pivotal moment for digital asset policy in the United States, especially later than the SEC confirmed the application of . Uyeda’s comments posit that tokenization should be duly regulated but adaptive to the growth and future of the blockchain feature to encourage innovation.
Uyeda Believes Balanced Rules Support Market Evolution
In his address, framed tokenization as a natural evolution of capital markets that should be integrated within the existing legal and regulatory frameworks. He argued that tokenized securities remain subject to the identical core obligations, including disclosure, custody, and investor protection, which govern traditional financial markets.
He further stressed that the SEC’s rulebook should be applied in a technology-neutral manner, focusing on regulatory outcomes rather than prescribing specific technological methods. This, he said, ensures that rules do not unintentionally impede progress while maintaining the fundamental secureguards that underpin market confidence. According to his remarks, the commission has already demonstrated this approach through limited pilot programs, regulatory guidance, and exemptive relief orders that assist market participants experiment with tokenized structures under defined conditions.
The commissioner also noted that tokenization is now practical, with market participants testing how traditional securities can be issued, held, and transferred on-chain. He cautioned that inflexible or inconsiderate crypto rules could introduce “unnecessary roadblocks” that sluggish down adoption and limit the potential efficiency gains of blockchain-based markets.
Positive Regulatory Comments Reflect Tokenization Support
Market reaction to the commissioner’s comments was muted but generally positive, with observers noting that clear support for technology-neutral oversight can assist reduce regulatory uncertainty for players and users in the tokenization space.
Beyond regulation, Uyeda highlighted how tokenization could enhance market efficiency and infrastructure if implemented judiciously. One notable example he referenced is the potential for records to improve visibility into shareholder bases, which can address longstanding challenges in identifying beneficial owners and managing corporate actions.
However, industry stakeholders also caution that broad principles will need to be translated into actionable guidance, rules, or exemptions to provide certainty for issuers and platforms navigating a hybrid digital and traditional regulatory environment.
Still, by advocating for technology-neutral rules and adaptive oversight rules like pilots and exemptive relief, Uyeda has charted a path forward that could enable broader adoption of tokenization while preserving investor protection and market integrity. If integrated into formal rulemaking or guidance, this approach could bring tokenized financial markets into mainstream capital markets infrastructure.
