SEC Chair Paul Atkins said the agency is taking “historic steps” to move financial markets onto blockchain networks, marking one of the most direct endorsements of on-chain infrastructure from a top US regulator. Speaking at a financial technology conference in Washington on Tuesday, Atkins described the initiative as a multi-year effort to modernize how securities are traded, cleared, and settled.
What Atkins Said About On-Chain Markets
Atkins did not release a detailed roadmap but said the SEC is working with the Treasury Department and the Commodity Futures Trading Commission to create a regulatory framework for tokenized securities and blockchain-based trading platforms. “We are at an inflection point where the technology has matured enough to support critical market infrastructure,” Atkins said, according to a transcript released by the SEC’s press office.
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The SEC has already launched a pilot program with a small group of broker-dealers to test the settlement of tokenized corporate bonds on a permissioned ledger. The program is expected to expand to equities and exchange-traded funds by the end of 2026, pending successful results.
Why This Matters for Investors and the Crypto Industry
The announcement represents a significant departure from the SEC’s previous enforcement-heavy approach under former Chair Gary Gensler, who pursued dozens of lawsuits against crypto firms for alleged securities law violations. Atkins, appointed in early 2025, has signaled a more collaborative posture toward blockchain innovation while maintaining that investor protection remains the agency’s core mission.
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For the broader crypto industry, the SEC’s on-chain push could reduce legal uncertainty for projects that issue tokenized versions of traditional assets — such as stocks, bonds, or real estate. Several major financial institutions, including BlackRock and JPMorgan Chase, have already launched pilot programs for tokenized funds, citing cost savings and faster settlement times.
“This is a validation of what many of us have been saying for years: blockchain is not just for cryptocurrencies, it’s a better rails for all financial assets,” said Sarah Bloom, a senior policy analyst at the Blockchain Association, in a statement.
What Comes Next
Atkins said the SEC will publish a formal request for comment on proposed rules for on-market trading systems that use distributed ledger technology. The comment period is expected to open in the second quarter of 2025. The agency also plans to hire additional staff with blockchain engineering expertise to review pilot programs.
Critics, including some Democratic lawmakers and consumer advocacy groups, have warned that moving markets onto blockchain networks could introduce new risks around data privacy, cybersecurity, and system resilience. Atkins acknowledged those concerns and said the SEC will require any approved platform to meet the same operational standards as traditional exchanges and clearinghouses.
The SEC’s shift toward on-chain infrastructure aligns with similar moves by regulators in the European Union and Singapore, which have already launched regulatory sandboxes for tokenized securities. The UK’s Financial Conduct Authority announced a similar pilot in late 2024.
Frequently Asked Questions
What does it mean for the SEC to move markets on-chain?
It means the SEC is exploring the use of blockchain or distributed ledger technology for securities trading, clearing, settlement, and record-keeping, potentially replacing legacy systems.
When did Paul Atkins make this announcement?
The announcement was made in early 2025, shortly after Atkins assumed the role of SEC Chair under the current administration.
How does this affect current crypto regulation?
This signals a potential shift toward integrating digital asset infrastructure into mainstream finance, which could lead to clearer rules for tokenized securities and blockchain-based marketplaces.
Is the SEC actually moving all markets to blockchain?
No. Atkins described the steps as historic but early, focusing on pilot programs and policy frameworks rather than an immediate full-scale transition.
