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.
“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.
Related stories:
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.
“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.
Related stories: