On Thursday, SEC Chair Paul Atkins emphasized his commitment to the transformation of U.S. financial markets through tokenization and on-chain settlement. He shared his vision via a post on X, stating that U.S. financial markets are ready to transition to an on-chain environment while embracing innovative technologies.

Following the SEC’s issuance of a “no action” letter to a subsidiary of the Depository Trust and Clearing Corporation (DTCC), this announcement comes as a significant boost for the initiative, allowing the DTCC to provide a new service for tokenizing securities. The move will involve tokenizing a wide range of assets, including the Russell 1000 index and U.S. Treasury bills.

Atkins believes that on-chain markets will enhance predictability, transparency, and efficiency for investors. However, this approval is just a starting point as the SEC deliberates creating an innovation exemption for market builders, facilitating the transition to an on-chain format with fewer regulatory hurdles.

“On-chain markets will bring greater predictability, transparency, and efficiency for investors,” Atkins stated, adding his commitment to fostering innovation as the industry advances towards on-chain settlement, which will allow for 24/7 trading and expedite transaction finality.

This approval has been well-received by market analysts, including ETF analyst Nate Geraci, who noted the rapid progress towards full tokenization, with the shift occurring faster than many anticipated. As the SEC continues to grant no-action letters to various crypto projects, infrastructure development for tokenized assets is underway, fostering institutional involvement in on-chain markets.

For further reading, see related articles on tokenization and the SEC’s evolving regulatory stance in the crypto space.