The US Securities and Exchange Commission (SEC) has shown a remarkable amount of optimism about crypto under the Trump administration. In a recent interview, chairman Paul Atkins said that he expects a breakthrough in blockchain technology within a few years. This could radically change the financial system, partly thanks to tokenization.
Blockchain transition could be completed within a few years
In an interview with Fox Business, SEC Chairman Paul Atkins paints a remarkably optimistic picture of the future. According to him, the traditional financial world can switch to blockchain “within a few years”. Think of shares that will soon be tradable 24 hours a day, instead of only during office hours.
Atkins states that blockchain offers “major benefits” and could fundamentally change the way transactions take place. Transactions can be processed automatically via smart contracts, without the intervention of third parties. This potentially makes the system faster, more efficient and less error-prone than the current financial infrastructure.
What is tokenization?
Tokenization means that you convert a real asset, such as shares, bonds, real estate or currency, into a digital token on a blockchain. Such a token represents the same value and rights as the original asset, but can be traded faster and easier thanks to the blockchain.
The chairman also indicates that he wants to “embrace” the technology in order to attract developments in the sector and bring the United States to the forefront of crypto innovation. In the interview he also acknowledges that the SEC has actually slowed down innovation in the past. Under President Biden, Gary Gensler was at the helm, with a hard line. Instead of clear regulations, the regulator opted for lawsuits, such as the one against Ripple, a drawn-out legal battle that started at the end of 2020 and was only completed this year.
New pro-crypto policy under Atkins
Under Paul Atkins, the SEC has already made several positive changes to stimulate crypto adoption. For example, the regulator is working on a so-called ‘innovation exemption’. This makes it possible for companies to try out new tokens in a safe test environment, without having to immediately comply with all the strict rules. The scheme should come into effect at the beginning of 2026.
Earlier this year, the SEC also published new guidelines, making it much easier to approve spot crypto exchange-traded funds (ETFs) in the US. This has already led to the launch of several funds, including those for XRP, Solana (SOL) and Hedera (HBAR).
BlackRock is also fully committed to tokenization
Not only the SEC sees potential in tokenization. Asset manager BlackRock, with top executives such as Larry Fink and Rob Goldstein, also speaks of a digital revolution that is comparable to the rise of the internet. According to Fink, “almost any asset” can be converted into a digital token, making the financial system fundamentally more efficient.
BlackRock now offers a tokenized fund via BUIDL: a digital money market product on the Ethereum (ETH) blockchain. This gives investors real-time access to returns on government bonds, without the intervention of traditional financial institutions.
Source: https://newsbit.nl/paul-atkins-tokenisatie-kan-financiele-systeem-in-paar-jaar-transformeren/
