The SEC Holds Meeting on Tokenization Regulation Issue, Revealing Divergence Between Traditional Finance and Crypto Companies

Thursday, December 5 Executives from Citadel Securities, Coinbase, Galaxy and other firms discussed tokenization at a meeting of the SEC’s Investor Advisory Committee. While tokenization encompasses a range of assets, its core is representing real-world assets on-chain; the panel advises the SEC on regulatory matters and investor protection. BlackRock Senior Managing Director and Global Head of Market Development Samara Cohen noted the meeting featured diverse views. The six-person panel represented “different developmental paths and perspectives,” she said, adding the discussion was valuable and differing viewpoints reflect current challenges—suggesting “there may not be just one solution.” The day before (Wednesday), some crypto advocates criticized a letter Citadel Securities submitted, which drew online pushback from parts of the crypto industry for urging the SEC to impose stricter rules on decentralized finance (DeFi) involving tokenized securities. Earlier Thursday, the committee also held group discussions on artificial intelligence (AI) and corporate governance. SEC Chairman Paul Atkins highlighted tokenization in his prepared remarks and clarified the agency’s stance. “To drive U.S. innovation, investment and job growth,” Atkins said, “we need to offer a compliant path for market participants to tap the unique capabilities of this new technology.”