SEC Commissioner Mark Uyeda: “Securities tokenization has entered a phase of mainstream adoption”

Mark Uyeda, a commissioner at the U.S. Securities and Exchange Commission (SEC), said securities tokenization is rapidly becoming a practical, necessary step toward operating capital markets more efficiently.

According to Cryptopolitan, a crypto-focused outlet, Uyeda said in recent remarks that “with an appropriate regulatory approach, capital markets can evolve in ways that improve price discovery and reduce trading frictions,” adding that “tokenization can be part of the process of moving toward fairer, more orderly and more efficient markets.”

Uyeda also noted that tokenization is entering the stage of mainstream regulatory discussion. Citing a case in which an application for exemptive relief under the Investment Company Act related to a financial product using a tokenized structure was made public, he said “this is a signal that tokenization is no longer confined to theoretical debate and is moving into a phase of real institutional review.”

He also stressed that “even if an asset is implemented on a blockchain, its legal status as a ‘security’ under U.S. securities laws remains.” He added that “for tokenization to spread, continued engagement with market participants is needed, and the balance among various regulatory options must be carefully considered.”

Uyeda further said tokenization could contribute to modernizing capital markets by speeding up settlement and improving visibility into asset ownership structures. He said he hopes that “institutional review processes like this are not the end point, but become part of the process of using innovation to make markets operate more efficiently.”