- SEC says tokenized securities may trade within a few years under existing US laws.
- SEC and CFTC sign MOU to coordinate crypto oversight and reduce rule overlap.
- DTCC receives SEC no action relief for tokenized asset pilot launching in 2026.
The SEC chairman said financial markets could adopt tokenization within a few years, indicating faster blockchain integration in traditional finance. Regulators are also aligning digital asset rules through a new SEC-CFTC agreement to coordinate oversight.
At the same time, institutions are testing blockchain systems for trading and settlement, as regulators aim to modernize market infrastructure while maintaining investor protections.
SEC outlines regulatory framework for tokenized securities
SEC leadership has stated that tokenized financial instruments will remain subject to current securities laws. The agency continues to apply a “substance over form” standard when evaluating digital assets.
Under that approach, the digital structure of an asset does not change its legal status. If an instrument qualifies as a security, it must comply with the Securities Act of 1933 and the Exchange Act of 1934.
This is MASSIVE: SEC Chairman Paul Atkins just said something most people don’t even understand…
“The next step is coming… tokenization of the market.”
“Maybe not even in ten years… maybe a couple of years from now.”
But what’s happening behind the scenes is even bigger.… pic.twitter.com/f7iALlbYkv
— Mark (@markchadwickx) March 15, 2026
The agency has also launched an initiative known as “Project Crypto.” The program reviews older rules that may slow the adoption of distributed ledger technology in financial markets. As part of this work, regulators are building a token taxonomy.
The framework aims to clarify how different digital assets fit within existing legal definitions. SEC officials have also confirmed that issuers may offer both traditional and tokenized versions of the same securities. This approach allows firms to test blockchain infrastructure without changing the legal structure of the asset.
Regulators have also repeated that compliance standards will remain in place. Tokenized securities must still follow registration rules, along with KYC and anti-money laundering requirements.
SEC and CFTC strengthen cooperation on digital asset oversight
The SEC and CFTC recently signed a memorandum of understanding to improve cooperation across digital asset regulation. Agreement replaces a coordination framework created in 2018. The new pact focuses on sharing information and aligning regulatory practices. Both agencies oversee areas where securities and derivatives rules overlap.
Officials say the goal is to reduce duplicated requirements for firms operating under both regulators. The agreement also seeks to improve consistency in enforcement and supervision. SEC Chairman Paul S. Atkins described the arrangement as a path away from earlier jurisdiction conflicts.
He said coordination would provide clearer guidance for companies developing new financial technologies. CFTC Chairman Michael Selig said cooperation helps maintain competitive and resilient markets.
He noted that regulatory clarity helps businesses operate while protecting investors. The memorandum does not expand the authority of either regulator. Instead, it sets procedures for collaboration, data sharing, and joint discussions with market participants.
Institutional pilots signal growing use of tokenized assets
Institutional experiments with tokenized assets are already underway. In December 2025, the SEC issued a no-action letter to the Depository Trust and Clearing Corporation. The letter allows the DTCC to run a three-year pilot program focused on tokenizing real-world assets.
These assets include Treasury bills and exchange traded funds. The service is expected to launch in the second half of 2026. Tokenized assets in the program will carry the same ownership rights as traditional securities. Market participants see blockchain settlement as a way to shorten clearing times.
Traditional settlement cycles can take days to complete. Distributed ledger systems can process transfers faster and with automated record keeping. Financial institutions have increased research in this area during the past several years. Analysts estimate that on-chain real-world assets reached about $24 billion by mid-2025.
Some projections suggest the market could approach $2 trillion by 2030. Regulators say the shift will occur gradually. However, new rules and pilot programs suggest tokenized market infrastructure is moving closer to practical use.
