The US Securities and Exchange Commission (SEC) is tiptoeing toward a significant shift in how it regulates the issuance of tokenized securities, according to Commissioner Hester Peirce. In a speech published just yesterday, Peirce unveiled that the SEC is mulling over new rules that could allow companies to issue, trade, and settle securities using blockchain technology without being shackled by some of the existing registration norms.
A Potential Game-Changer
Imagine a world where decentralized exchanges, like Uniswap, aren’t bogged down by the need to register as broker-dealers or exchanges. This could soon be a reality if the SEC moves forward with this “potential exemptive order,” offering a fresh breeze of regulatory relief. Commissioner Peirce highlighted that the current regulations, many of which were crafted in a pre-blockchain era, might not fit the innovative mold of today’s technologies—an astute observation many in the crypto community have long echoed. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Yet, it’s not all laissez-faire. The SEC would still require firms to abide by anti-fraud and market manipulation safeguards. This isn’t a regulatory free-for-all; it’s more of a recalibration to fit the digital age.
Shifting Sands at the SEC
This move appears to be part of a broader policy shift under the SEC’s new leadership. With Paul Atkins taking the helm as chair just last month, the agency seems to be narrowing its focus. Previously, under Gary Gensler, the SEC was on the offensive, filing a flurry of lawsuits against crypto firms for securities law breaches. But the winds have changed.
The agency’s recent guidance has softened, suggesting that memecoins, when recognized as speculative without intrinsic value, don’t classify as investment contracts. Similarly, stablecoins marketed solely for payment purposes are now outside the securities perimeter. This evolving perspective is raising eyebrows—and hopes—across the industry. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
Context and Implications
This potential rule change isn’t happening in a vacuum. It seems to be a response to the rapid evolution of financial technologies and the SEC’s ongoing challenge to keep pace. The crypto sector has been booming, with Ethereum, for example, leading the pack in the tokenization race. As traditional finance continues to collide with blockchain innovations, the regulatory framework must evolve or risk obsolescence.
The implications of this shift could be profound. By easing the regulatory burden, the SEC might unlock a new wave of innovation and growth in the crypto sector. Yet, questions linger. Will this pivot sustain industry growth without compromising investor protection? And how will international regulators react to such a precedent?
Looking Ahead
As we gaze toward the horizon, the potential for a more flexible regulatory environment in the US could set the tone for global crypto regulation. But, as with all things in crypto, nothing is certain. The community is watching closely, eager to see if the SEC’s reconsideration will translate into tangible changes.
The coming months—indeed, the rest of 2025—will be pivotal for the crypto industry. Will the SEC’s new stance foster a more inclusive financial ecosystem, or will it face pushback from traditional sectors wary of change? Only time will tell. Until then, the industry holds its breath, contemplating the possibilities of a more open and innovative future.
Source
This article is based on: SEC considers new rules easing security token issuance
Further Reading
Deepen your understanding with these related articles:
- The SEC Can Learn From the IRS in Making Regulation Simpler for Crypto
- SEC Ditches PayPal’s PYUSD Probe, Removing Key Regulatory Hurdle for Its Stablecoin
- U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer (openai)
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
