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BlackRock, Fidelity, Nasdaq, and others join the SEC crypto roundtable on May 12

In this post:

  •  BlackRock, Fidelity, and Nasdaq are at the forefront of the SEC 3rd meeting on crypto regulation, which will be about tokenization.
  •  Hester Peirce said that tokenization is a technological development that could substantially change many aspects of our financial markets.
  •  The market for tokenized real-world assets is worth $18.85 billion

 

The SEC’s third roundtable of the “spring sprint toward crypto clarity,” as dabbed by Commissioner Hester Peirce, is set to take place in seven days. This meeting will be about tokenization, and BlackRock, Fidelity, and Nasdaq are at the forefront of the discussion.

The panelists are Robert Mitchnick of BlackRock, Cynthia Lo Bessette of Fidelity, Eun Ah Choi of Nasdaq, Will Geyer of Invesco, Sandy Kaul of Franklin Templeton, Christine Moy of Apollo Management, Johnny Reinsch of Tokenized Asset Coalition, Christian Sabella of DTCC, and Alex Zozos of SuperState.

Commissioner Hester M. Peirce, leader of the Crypto Task Force, said, “I look forward to hearing ideas from our panelists on how the SEC should approach this area.” 

It will be hosted at the SEC’s headquarters at 100 F Street, N.E., Washington, D.C. The event will be open to the public and streamed live on the SEC’s website.

SEC tied to the future of Tokenization

This meeting will examine on-chain Assets and Traditional Finance Integration, looking at how blockchain-based assets can be integrated into traditional financial systems. Hester Peirce said, “Tokenization is a technological development that could substantially change many aspects of our financial markets.”

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Meanwhile, according to an analytics tool, the market for tokenized real-world assets is worth $18.85 billion right now. Private equity is the biggest asset in the sector, making up 55% of all tokenized RWAs. Other big assets are the US Treasuries and commodities.

However, analysts say that the US Treasuries will turn things around, with a market that grows to $28 billion. Even though the sector is worth $28 trillion, it still has problems like slow payments, uneven liquidity, and expensive middlemen.

Tokenized US Treasuries grew faster than private credit in 2024, from $775 million to $3.97 billion, but they were still behind it. This year’s first three months have seen a huge rise in their market value—almost 30%. So, by the end of this year, RWAs should have a market value of $50 billion.

In addition, according to analysts, private credit will only grow slowly for the rest of the year. A bullish forecast says that its market value will reach $17.5 billion. On the other hand, tokenization could change the sector, which is still plagued by low liquidity, high investment minimums that keep small players out, and flexible multi-year lockups.

Also, tokenized stocks could become common, even though their market value is only $15 million right now. The sector’s growth has been slowed by laws that put limits on it, bad infrastructure, and close scrutiny from regulators. 

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This meeting could make new laws that are easier for investors to understand. These changes could make tokenized stocks available to more people, which would make the industry a $1 billion business.

The fourth roundtable meeting date has been changed

The date for the Crypto Task Force’s roundtable, “DeFi and the American Spirit,” has been changed from June 6 to June 9. It will focus on the regulatory implications and opportunities presented by decentralized finance (DeFi) platforms.

All those who previously registered were informed of the change of date, and their registrations have been carried forward to the new date. Also,  New registrations can continue to be completed.

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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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