SEC Commissioner Mark Uyeda signaled a notable shift in how U.S. regulators are approaching blockchain-based finance, saying securities tokenization is moving beyond theory and into real-world testing.
Key Takeaways
The SEC says securities tokenization is moving from theory into early real-world use.
Existing securities laws will apply to tokenized assets under a technology-neutral approach.
Tokenization does not change legal duties around custody, disclosure, or investor protection.
The agency is leaning more on pilot programs and no-action letters than enforcement.
Speaking at the Asset Management Derivatives Forum, Uyeda said market participants are actively experimenting with issuing and transferring traditional securities on-chain, treating blockchain less as a speculative tool and more as financial infrastructure.
Uyeda described tokenization as entering its early practical stage, with firms exploring how stocks, funds, and other securities can function natively on blockchain networks. These efforts, he said, show that on-chain securities are no longer hypothetical use cases but live market experiments.
A technology-neutral regulatory stance
A core message of the speech was the SEC’s commitment to technology neutrality. Uyeda stressed that existing securities laws are designed to regulate outcomes such as investor protection, disclosures, and market integrity, regardless of whether transactions occur through traditional systems or blockchain-based rails.
Uyeda argued that regulation should not create unnecessary obstacles to innovation. If new technology achieves the same regulatory goals, he said, rules should not stand in the way simply because the tools look different from legacy systems.
Tokenized assets still follow securities law
He made clear that moving securities onto a blockchain does not change their legal status. Tokenized securities remain subject to standard rules around custody, reporting, and fiduciary duties, and blockchain does not alter those core obligations.
Uyeda also pointed to a gradual shift away from regulation by enforcement in the crypto space. Instead, he highlighted limited pilot programs and no-action letters as more flexible tools to test new models while keeping oversight intact.
Investment Company Act signals real adoption
As evidence that tokenization is becoming functional, Uyeda cited a recent exemption application under the Investment Company Act. He said the request shows how on-chain structures are starting to integrate directly with existing regulatory frameworks.
Taken together, Uyeda’s remarks suggest the SEC increasingly views tokenization as an evolution of traditional finance, not a separate system. The agency’s strategy appears focused on fitting blockchain-based securities into established rules, rather than rewriting the rulebook from scratch.
