U.S. Securities and Exchange Commission (SEC) Commissioner Mark T. Uyeda has called on the agency to eliminate “unnecessary roadblocks” hindering the advancement of tokenized securities.
Speaking at the 2026 Asset Management Derivatives Forum on Monday, February 9, Uyeda argued that blockchain-based systems represent a significant modernization of capital markets rather than a radical departure from established legal principles. He emphasized that while tokenized versions of assets must remain subject to federal securities laws, the SEC should facilitate their adoption to enhance transparency and speed up settlement cycles across the industry.
Shifting from theory to practical reality
Uyeda noted that tokenization has moved beyond a conceptual phase into a “practical reality” as firms actively test how traditional securities can be issued and transferred on-chain. He highlighted the SEC’s recent public notice regarding an exemptive application under the Investment Company Act as a signal that the Commission is open to modernizing its approach. According to Uyeda, the agency’s primary task is to translate existing laws into on-chain environments without creating friction that could stifle market demand.
The Commissioner advocated for “technology-neutral” rulemaking that focuses on regulatory outcomes rather than specific technical processes. He acknowledged that many current SEC rules assume the presence of multi-layered intermediaries, which programmable blockchain rails could bypass to enable more direct interactions between issuers and investors.
Regulatory clarity remains a cornerstone for growth
The SEC staff recently issued a joint statement clarifying that the format of recordkeeping, whether on-chain or off-chain, does not alter the legal status of an instrument. These guidelines specify that tokenized securities, whether sponsored by an issuer or a third party, must still comply with registration and disclosure requirements unless they qualify for specific exemptions.
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