SEC Commissioner Mark T. Uyeda Sets the Tone: Tokenized Securities Do Not "Break the Law"; On-Chain Assets Welcome a New Window of Compliance

SEC Commissioner Mark T. Uyeda stated at the Asset Management Derivatives Forum that as tokenization moves from concept to implementation, regulatory rules should not create “unnecessary barriers” to market innovation. He emphasized that blockchain-based securities are a modern evolution, not a challenge to the existing regulatory framework.

Uyeda pointed out that the current market has entered an “early practice stage,” with participants testing how to issue, hold, and transfer traditional securities on-chain. He believes that the SEC’s responsibility is not to create a separate set of rules specifically for crypto-native assets but to extend existing securities laws to the on-chain environment, reducing institutional friction.

He also clarified that tokenized versions of securities still fall under securities regulation, and core obligations such as disclosure, custodial responsibilities, and investor protection will not change due to technological upgrades. “Ultimately, whether tokenization becomes a reality depends on market demand and confidence, and regulation should not be an obstacle,” Uyeda said.

These remarks continue the SEC’s recent policy direction regarding tokenized assets. Last month, the SEC clarified that tokenized securities remain subject to current securities laws and must comply with registration and disclosure requirements.

On the practical application level, Uyeda mentioned that the SEC recently issued a public notice regarding exemption applications under the Investment Company Act, including cases involving WisdomTree Digital Trust and its affiliates. The application aims to permit related-party transactions under specific models to support on-chain distribution structures for 2a-7 money market funds, seen as an important step toward the practical deployment of tokenized funds.

Uyeda also stated that the SEC adheres to a “technology-neutral” principle, focusing more on whether regulatory objectives are achieved rather than on specific technological paths. He acknowledged that current rules often assume the existence of multiple intermediaries, whereas tokenization can enable a more direct connection between issuers and investors on an open, programmable blockchain.

Against the backdrop of accelerating development in tokenized securities, RWA on-chain, and blockchain financial infrastructure, the SEC’s stance is seen as opening a clearer compliance pathway for the U.S. tokenization market and providing key policy signals for bringing traditional assets onto the blockchain.