(Rejected ) SEC Chief Makes Case for Blockchain, Says Stocks May Become Tokenized

Jay Clayton, the chairman of the United States’ Securities and Exchange Commission (SEC) has made a case for blockchain technical with insinuations that publicly traded tokens may one day become tokenized. Clayton made this remark in a webinar dubbed “Two Sides of the American Coin: Innovation & Regulation of Digital Assets,” organized by the Chamber of Digital Commerce. 

At the event which also featured Brian Brooks, Acting Comptroller of the Currency (OCC), Clayton pointed out how technology is changing the finance and the securities market by noting that 20 years ago, stock certificates were given to investors in comparison to the digital entries obtainable today. Noting this transformation, the SEC boss noted that “It may very well be the case that those all become tokenized.”

While Clayton declared further that the SEC’s door is “wide open” individuals and firms who may be willing to learn how to “tokenize the ETF product in a way that adds efficiency.”

Brian Brooks on the other hand acknowledged that blockchain networks "fundamentally more resilient and efficient than vertically integrated sort of control towers," and that necessitates a framework that is "safe and sound."

US Watchdogs Are Relaxing Regulations, Room For Growth?

While the duo of the SEC and the OCC have both taken their turns to mete out seemingly necessary regulations with runs of rejections to crypto-based ETFs, a turnaround seems more imminent as shown from recent moves from both watchdogs.

While the US Office of the Comptroller of the Currency (OCC) recently announced that states and national banks and federal savings associations can provide crypto custody services to customers, the SEC has also made a move in the right direction by making Initial Coin Offering (ICO) token sales more inclusive.

With the webinar affirmations from both the SEC and the OCC chiefs, the interest from blockchain-based firms as well as individual investors may soar provided their proposed ventures do not have “fundamental legal compliance issues” as Brooks stated.