Member Mark Ueda, who chaired the U.S. Securities and Exchange Commission after Gary Gensler, made an impressive assessment of the changes that tokenization could generate in financial markets, cryptocurrency regulation, and retail investors’ participation in private markets.
Saying that tokenization could launch a new era of stock trading, Weeda turned his attention to the historical development of stock exchanges, saying, “We used to trade with papers. Now we’re going through ledger records. Tokenization could be the next stage.”
He says there are still many issues with the agenda regarding how token-based securities are regulated. “We are waiting for suggestions from market participants. Our top priority is to protect investors and implement security measures against conflicts of interest.” When asked when token-based stock purchases will be open to individual investors, Uyeda said the legal regulatory process can take a long time, and in some cases the process can be accelerated with exemption decisions or instructional documents.
Uyeda reminded the SEC does not consider non-commercial stability as a securities, saying, “Stable items that do not produce interest or dividends do not fall under the definition of securities.” However, he said security and protection measures should be paid to new structures such as tokenized money market funds.
Uyeda answered questions about crypto ETFs related to Trump, saying the SEC will act along with the principle of “neutrality.” Uyeda said Memecoin and NFT are not securities of their own, warning that “but if they are placed in structures such as investment funds, that structure can be security.”
Commissioner Hester Perth is leading the Cryptody Task Force, and Ueda has recently criticised the “sanctions-focused regulatory” approach as “there is a need to adopt a more transparent, participatory, predictable regulatory approach” to the crypto market.
*This is not investment advice.
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