SEC Officials Talk Tokenization

On May 12, 2025, SEC Chair Paul S. Atkins and Commissioner Mark T. Uyeda gave speeches at the crypto task force roundtable on tokenization.

Chair Atkins Speech

Techology is advancing such that securities are increasingly being moved from traditional databases (ledgers with the transfer agent, etc..) to blockchain based ledger systems.  Atkins likens this change to the historical music industry which morphed from analog vinyl records to cassettes to digital software. The change in the music industry allowed streaming and an entirely new system of developing and listening to music.

Atkins notes that just as digitization revolutionized the music industry, the digitization (i.e. tokenization) of securities has the potential to “remodel aspects of the securities market by enabling entirely new methods of issuing, trading, owning, and using securities.”  For example, the new technology will make the issuance of dividends (especially recurring dividends) automatic, allow for the trading of previously illiquid assets, and allow for the creation of new

Disclosures On Offerings And Registrations Of Securities In The Crypto Asset Markets

On April 10, 2025, the SEC Division of Corporation Finance (“CorpFin”) issued a statement on disclosurs in offerings and registrations of securities in the crypto asset markets.  This is the third statement issued by CorpFin on various topics dealing with cryptocurrencies and digital assets in a matter of weeks.  For a review of CorpFin’s statement on certain proof of work mining activities see HERE and on stablecoins, see HERE.

The statement is meant to give guidance related to specific disclosure topics when either registering crypto assets or when filing a registration statement for an issuer in the crypto asset business.  The guidance cuts across all Regulation S-K disclosures whether in a Securities Act form (S-1; F-1; etc..) or an Exchange Act form (10-K; 20-F etc..).

Description of Business – Item 101 of Regulation S-K

Item 101 of Regulation S-K – Description of Business – requires an issuer to provide detailed background information material to understanding the general development