SEC Crypto Task Force Convenes—Tokenization Takes Center Stage

Wall Street’s favorite buzzword meets regulatory scrutiny as the SEC’s crypto task force gathers. Tokenization—the process of converting real-world assets into blockchain-based securities—gets the spotlight. Expect heated debates on compliance, investor protection, and how to fit decentralized protocols into legacy frameworks.

Meanwhile, traditional finance quietly wonders if they’ll need to rebrand their ’innovative’ REITs as ’vintage tokenized assets.’

The fourth digital assets roundtable

The U.S. SEC’s Digital Assets Task Force will hold its fourth Digital Asset Roundtable on the 12th of May, further reinforcing the growing intersection between TradFi and DeFi.

Key SEC figures, including Chairman Paul Atkins and Commissioner Hester Peirce, will deliver opening remarks, with Peirce highlighting tokenization’s transformative potential.

The agenda includes speakers from major financial players like BlackRock and Fidelity, indicating increasing institutional engagement.

GENIUS Act stalls in Senate as support unravels

Just days before the roundtable, stablecoin regulation hit a snag.

On the 8th of May, the GENIUS Act – a long-anticipated stablecoin regulation bill – surprisingly failed to advance after a narrow 49-48 vote.

The setback was driven by a notable shift among several Democrats who had earlier backed the legislation.

Source: mailchi.mp

Lawmakers, including Ruben Gallego and Lisa Blunt Rochester, cited national security risks, insufficient consumer protections, and gaps in anti-money laundering provisions as reasons for their reversal.

Their joint statement called for tighter oversight, putting regulatory clarity on pause yet again.

Big players pivot as crypto matures

As institutional players deepen their engagement, BlackRock met with the SEC Crypto Task Force on the 9th of May to discuss a detailed agenda spanning staking, tokenization, and crypto ETP approval standards.

Of course, BlackRock’s presence signaled more than curiosity—it was a deliberate push to define compliance in crypto investing.

Source: X

In parallel, Cardano’s founder, Charles Hoskinson, announced a strategic shift in philosophy, departing from its traditionally slow, academically rigorous development model.

In a candid update, he emphasized the urgency of delivering “Leios by 2026, not 2028,” justifying recent team contract terminations to prioritize speed and innovation.

Hoskinson spotlighted Aiken and Midgard—new teams focused on modularity and speed, marking a break from Cardano’s early academic model.

It is becoming increasingly evident that the sector is recalibrating toward faster execution and greater regulatory clarity.