SEC Chair Atkins Signals Regulatory Shift for Crypto Tokenization

U.S. Securities and Exchange Commission Chairman Paul Atkins has drawn a direct parallel between the digitization of music and the potential for blockchain-based securities, warning that outdated regulations risk stifling innovation. Speaking at a Washington roundtable, Atkins emphasized the need for updated guidelines to accommodate tokenized stocks and bonds, citing only four crypto issuers’ use of full SEC registration to date.

The SEC chief framed current filing requirements like FORM S-1 as prohibitively cumbersome for crypto projects, comparing the regulatory transition to the music industry’s shift from vinyl to digital formats. His remarks suggest impending changes to issuance frameworks, with a focus on preventing capital flight to more crypto-friendly jurisdictions.