Tokenization Gains Momentum in Financial Markets
Tokenization is becoming popular, not just on X. Platforms like Kraken and Robinhood now let users trade tokenized stocks. Bitwise’s Matt Hougan sees a massive $257 trillion market for tokenized assets. Regulators are taking notice.
U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins supports tokenized stocks as an innovation. However, SEC Commissioner Hester Peirce warns of “unique risks.” On July 9, 2025, Peirce stated that tokenized securities are still securities and subject to existing laws.
Peirce’s message, “Enchanting but not Magical,” clarifies that blockchain doesn’t change the legal nature of securities.Investors and issuers must understand this to avoid risks. She also notes that some tokenized securities may introduce counterparty risks.
peirce calls for collaboration between market participants and SEC representatives to create a clear legal framework.This contrasts with Gary Gensler’s approach, who often considered cryptocurrencies as unlicensed securities.
SEC Chair Paul Atkins views tokenization positively, calling it an innovation. He believes the SEC should support market innovation
