SEC's advisory group backs tokenized securities push, outlines how to keep it safe

The SEC's Investor Advisory Committee has voted to recommend the agency move forward with a policy allowing tokenized securities trading on blockchains. This would enable faster settlement – potentially a single transaction – by embedding ownership records directly into a blockchain, cutting out traditional intermediaries. The recommendation includes narrow exemptions contingent on mandatory disclosures, routine supervision, and ensuring investors receive the best possible terms. While acknowledging potential risks, such as investor misunderstanding and increased costs, the committee recognized tokenization's potential to enhance settlement efficiency and reduce risk. SEC Chairman Paul Atkins stated the agency is working towards formal regulations and expects to consider an innovation exemption for limited trading of tokenized securities.

(Source：CoinDesk)