- Bitcoin’s price has recently declined after a Federal Reserve warning, dropping from close to $100,000 to under $80,000.
- U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins predicts the U.S. financial market will adopt blockchain technology within two years.
- BlackRock CEO Larry Fink supports tokenization, comparing its potential growth to the internet’s rise in the 1990s.
- Tokenization refers to converting traditional assets into blockchain-based tokens, enabling easier trading and greater transparency.
- The SEC plans to introduce an innovation exemption allowing some crypto financial products to avoid full registration, signaling a regulatory shift.
Bitcoin’s price has fallen sharply this week after reaching near $100,000 from a low below $80,000. This decline followed a surprise warning from the Federal Reserve regarding the market. The cryptocurrency’s value had earlier peaked above $126,000 in October but has since trended downward.
Paul Atkins, chair of the SEC, stated in an interview with Fox Business that he expects the entire U.S. financial market to switch to blockchain technology within the next two years. Blockchain is the digital ledger system that underpins bitcoin and other cryptocurrencies.
Atkins said, “It’s the way the world will be [in] not just 10 years but maybe as little as two years.” He highlighted that adopting blockchain will bring benefits in transparency and risk reduction through the digitalization and tokenization of assets.
BlackRock CEO Larry Fink also supports this shift. Writing in The Economist, Fink compared tokenization to the internet in 1996, noting its growth potential. Tokenization means that items like equities and complex financial instruments are converted into blockchain-based tokens for easier and more transparent trading.
According to a report by crypto asset manager Hashdex, more than $8 billion of tokenized Treasury bills currently circulate on blockchains, up from about $700 million two years ago. The tokenized assets market is expected to reach nearly $400 billion by the end of 2026. The report notes this growth mirrors early adoption rates seen when exchange-traded funds (ETFs) first launched.
Earlier this month, Atkins revealed plans for the SEC to introduce an “innovation exemption” starting in January. This exemption will allow certain crypto-based financial products to enter the market without full registration, marking a change from the previously more restrictive approach under former chair Gary Gensler.
Atkins stated, “It’s a new day and we want to embrace this new technology.” This regulatory adjustment aims to support the expansion of digital assets and blockchain innovation within U.S. financial markets.
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