SEC Considers Innovation Path for Asset Tokenization Post-GENIUS Act

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SEC Considers Innovation Path for Asset Tokenization Post-GENIUS Act

• SEC Chair Paul Atkins has highlighted the need to develop a tokenized securities ecosystem as the movement of assets on-chain is inevitable.
• He has also examined the potential impact of the GENIUS Act passage on the financial ecosystem.

The Chairman of the US Securities and Exchange Commission (SEC), Paul Atkins, has lauded the landmark passage of the GENIUS Act and how this lays the foundation for serious innovation.

The Tokenized Securities Ecosystem and the GENIUS Act

Speaking at a press event, Atkins disclosed that the Commission could build on the multiple passages to embark on several industry-friendly initiatives. According to him, the SEC is already exploring different approaches, including an innovation exemption, to incentivize asset tokenization within its regulatory framework significantly.

Specifically, this is expected to allow new trading methods and unlock targeted relief to back the development of the tokenized securities ecosystem. Additionally, Atkins admitted that the movement of assets on-chain is inevitable; henceforth, there is a need to just embrace it.

If it can be tokenized, it will be tokenized.

In his submission, the SEC chair also touched on the passage of the GENIUS Act, Digital Asset Market Clarity (CLARITY) Act, and the Anti-CBDC Surveillance State Act, which was comprehensively covered in our news story. According to him, the blockchain and crypto asset technologies could be the “magic wand” to revolutionize the financial infrastructure of the US while reducing cost, delivering efficiency, and enhancing transparency and risk mitigation.

As detailed in our recent publication, the Genius stablecoin bill got bipartisan support with a massive vote of 308-122. After this, it was sent to the desk of US President Donald Trump, who is expected to append his signature today, July 19, at 2:30 p.m. (ET) to legally recognize its provisions.

According to Atkins, the enactment of this legislation could facilitate the streamlining of payment in the financial ecosystem.

Achieving the US Regulation Clarity and Brad Garlinghouses Comments

Since assuming office, the SEC Chair has been very lenient in his approach compared to his predecessor, Gary Gensler. The Atkins administration has campaigned for more formal actions including issuing staff guidance to provide the needed clarity on the distributions and assets that do not flout federal securities laws.

As highlighted in our earlier report, Staff Accounting Bulletin No. 121 has already been rescinded, clearing the path for the embrace of crypto custodial services. According to Atkins, this Bulletin created confusion and lacked public input.

Hailing the passage of the GENIUS Act, Ripple boss Brad Garlinghouse has described the exercise as a truly historic moment for Financial Technology and digital assets.

As explained in our recent article, the GENIUS Act specifically guides the operation of stablecoin issuers by setting clear standards. The rules captured in the bill include an annual audit and monthly transparency report, 1:1 reserve backing with U.S. dollars or Treasury bills, and the issuance of dollar-backed stablecoin by only regulated financial institutions.

The Clarity Act is also expected to set clearer oversight rules for the SEC and the Commodity Futures Trading Commission (CFTC). As noted in our earlier post, this Act was first introduced by Representative French Hill on May 29, 2025. The motive was to clearly establish a relevant definition for digital assets, allow limited fundraising with SEC registration, define a mature blockchain system, protect self-custody rights, and preserve existing financial laws, among other objectives.