TLDR

SEC backs tokenization with new exemption to fuel digital asset innovation.
GENIUS Act brings clarity to stablecoins, paving way for $3.7T growth by 2030.
Atkins steers SEC toward flexible crypto rules, moving past strict enforcement.
Tokenized finance gains ground as SEC shifts strategy to embrace blockchain.
Stablecoin law and SEC reforms aim to make U.S. a global crypto finance leader.

The US Securities and Exchange Commission (SEC) is considering an innovation exemption to promote tokenization, a move Chair Paul Atkins says supports digital asset growth. The proposed exemption would allow flexibility in trading and support building a broader tokenized securities ecosystem. The new direction signals a shift in strategy following the passage of the GENIUS Act and related crypto legislation.

Tokenization Gains Momentum Under SEC Innovation Push

The SEC plans to adjust its rules to encourage tokenization and create a space for new digital trading methods. This includes the innovation exemption aimed at easing the development of tokenized securities markets. By reducing regulatory friction, the SEC expects to accelerate onchain asset movement.

🚨 JUST IN 🚨
SEC is considering an innovation exemption from regulations to promote tokenization in the US. 🇺🇸

Paul Atkins reveals efforts to boost this transformative tech!#Crypto #Tokenization #SEC #Innovation #Blockchain #Regulation pic.twitter.com/vEwuBxuig0

— Crypto News Hunters 🎯 (@CryptoNewsHntrs) July 18, 2025

Atkins views tokenization as the future of financial infrastructure and wants the SEC to enable, not obstruct, that progress. He believes if something can be tokenized, it will eventually become tokenized as markets move toward blockchain-based systems. The exemption would offer limited regulatory relief for early-stage platforms while ensuring basic protections remain.

This approach contrasts with past regulatory attitudes that focused on enforcement and tight restrictions. Under Atkins, the SEC aims to give the digital asset market room to evolve with defined oversight. This shift reflects the growing acknowledgment that tokenization is not a trend but a structural shift.

Stablecoins Gain Clarity Following Legislative Approval

Stablecoin regulation took a significant step forward as Congress passed the GENIUS Act, setting clear federal standards for issuers. The legislation mandates that firms back stablecoins with short-term U.S. government debt or similar highly liquid assets. Once President Donald Trump signs the law, it will take effect within 18 months or sooner, depending on regulatory coordination.

The SEC supports this legal clarity but affirms stablecoins will fall under banking regulators, not securities law. Atkins emphasized that clear oversight will help stabilize and expand the $265 billion stablecoin market. Analysts project the market could grow to $3.7 trillion by 2030 with proper frameworks.

While industry leaders praised the legislation, some lawmakers raised concerns about consumer protections. Critics argued that risks such as fraud and manipulation remain insufficiently addressed. Despite the debate, the bill marks a clear step toward integrating tokenization into mainstream finance.

SEC Strategy Shifts From Gensler-Era Rules

Atkins intends to revise or reverse several rules established under former Chair Gary Gensler. These include regulations affecting how brokers handle digital assets and the broad categorization of crypto products. Instead of sweeping enforcement, Atkins favors structured rules and flexibility for innovation.

He believes tokenization will transform how assets are held, traded, and reported across markets. This transition requires adaptable regulatory tools that respond to technological advances without stifling them. The SEC aims to strike a balance between innovation and accountability.

The tokenization strategy builds on a broader goal to make the U.S. a global leader in crypto finance. By prioritizing transparency, efficiency, and regulation, the SEC seeks to foster a secure and innovative financial system. Atkins’ vision aligns with legislative momentum and rising demand for digital solutions.

 

The post Paul Atkins Backs Tokenized Future with New SEC Vision appeared first on CoinCentral.

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Filed under: News - @ July 18, 2025 3:29 pm