SEC commissioner says tokenization should not face unnecessary barriers

SEC Commissioner Mark Uyeda said the agency’s rules should not impose “unnecessary obstacles” on the tokenization of traditional securities, noting that the technology is moving beyond experimentation and into real-world financial infrastructure. Speaking at an industry conference, he emphasized that the market is actively testing ways to issue, custody, and transfer securities in on-chain form.

Uyeda stated that the SEC’s primary task is not to create a separate regulatory framework for tokenized assets, but to properly apply existing requirements to an on-chain environment without placing undue pressure on innovation. He reminded the audience that regardless of the technological wrapper, tokenized securities remain subject to disclosure rules, investor protection standards, and custodial regulations.

He argued that demand for tokenization should be driven by the market rather than regulatory barriers. While technological progress does not eliminate fundamental legal obligations, he said it does allow the industry to rethink how issuers, investors, and intermediaries interact. Many SEC rules were designed for a multi-layered intermediary structure, whereas on-chain models can simplify workflows and increase transparency.

As an example of progress toward real deployment, Uyeda referenced a recent exemptive application from WisdomTree Digital Trust to create a tokenized money market fund under Rule 2a-7. Projects like this, he said, show that the industry no longer views tokenization as an experiment but as a path to launching real products under existing regulation.

Uyeda also reaffirmed the SEC’s commitment to “technological neutrality,” meaning the agency evaluates market outcomes, safety, and legal compliance rather than the underlying technology itself. This approach, he argued, can foster the growth of on-chain instruments while maintaining investor protections.

The market interpreted Uyeda’s comments as a signal that a more predictable regulatory environment for tokenization is taking shape. With institutional interest rising in on-chain funds, money market products, and tokenized debt instruments, the SEC’s stance may become a key factor accelerating the rollout of new offerings in 2026.