SEC Chair Paul Atkins has confirmed that being onchain has its advantages
The head of the US Securities and Exchange Commission is openly backing a future where financial markets run on blockchain technology. SEC Chair Paul Atkins said this week that US markets are heading onchain and that regulators are beginning to support that shift rather than slow it down.
But this is just the beginning. I look forward to @SECGov considering an innovation exemption to allow innovators to begin transitioning our markets on-chain by harnessing new technologies and business models – without being burdened by cumbersome regulatory requirements.
— Paul Atkins (@SECPaulSAtkins) December 11, 2025
Atkins pointed to a recent move by the SEC to issue a no-action letter to a Depository Trust and Clearing Corporation subsidiary. That decision allows the DTCC to test a tokenization service covering assets such as major stock indexes, exchange-traded funds, and US government bonds. The pilot would bring traditional securities onto blockchain rails while keeping existing investor protections in place.
The SEC chair described the DTCC project as an early step, not the final goal. He said the agency is exploring an “innovation exemption” that could give developers room to build tokenized markets without facing outdated rules designed for legacy systems. The idea is to let new models grow while regulators observe how they perform in real conditions.
Blockchain-based settlements could change how markets operate. Transactions could clear faster, trading could run around the clock, and some middle layers might no longer be needed. Supporters argue this would lower costs, improve transparency, and reduce operational risk for investors and institutions.
Market watchers say the shift is already gaining speed. Analysts have noted that tokenization is moving from theory to live testing across finance. The SEC has also issued similar no-action guidance in recent months, covering areas like crypto custody and blockchain infrastructure projects.
At the same time, private investment is flowing into companies building tools for tokenized assets. New funding rounds and pilot programs suggest firms are preparing for a future where stocks, bonds, and funds exist natively onchain. Whether the innovation exemption becomes formal policy will help determine how quickly that future arrives.
