SEC Commissioner Frames Tokenization as Market Evolution, Not Regulatory Disruption

SEC Commissioner Mark Uyeda characterized the tokenization of securities as an evolution of market structure rather than a regulatory upheaval, urging continued engagement with market participants and careful evaluation of trade‑offs as tokenization becomes more practical for efficient markets ^[1][2][4].

The Commission has clarified that tokenized securities are subject to existing federal securities laws and that blockchain technology does not create an exemption; proposed rule amendments are intended to allow tokenized and traditional securities to trade within the same legal framework ^[3].

Regulatory signals include the SEC's recent approval of a tokenized money market fund, which officials say demonstrates steps toward modernization, and Uyeda reiterated the agency's preference for technology‑neutral rules that reduce market friction and improve price discovery ^[4][2].

Together, Uyeda's remarks and the SEC's guidance frame tokenization as an incremental market modernization that requires regulatory clarity and ongoing cooperation between regulators and industry participants ^[1][3][2].