The U.S. SEC advisory group supports advancing tokenized securities and outlines security safeguards.

PANews reported on March 13 that, according to CoinDesk, the U.S. Securities and Exchange Commission's Investor Advisory Committee voted to approve recommendations to advance regulatory policies for tokenized securities, allowing stock trading to bypass the intermediary settlement model that Wall Street investment firms have relied on for decades. The committee recommended providing limited exemptions for blockchain stock trading, provided that mandatory disclosure, regular external oversight, and ensuring all investors receive the best possible terms in order execution are met.

The SEC chairman stated that these crypto assets still legally meet the definition of securities and therefore require the same safeguards as those in the traditional system. The committee noted that the greatest risk of tokenized securities is that new reforms or exemptions could introduce new risks unknown to investors and incur costs higher than the tokenization gains. Atkins indicated that the SEC is expected to soon consider an innovation exemption to facilitate limited trading of certain tokenized securities and is looking towards developing a long-term regulatory framework.