The US Securities and Exchange Commission (SEC) recently held a public meeting on tokenization regulation, highlighting clear divisions between traditional financial institutions and the crypto industry, making it one of the most watched policy events recently. Executives from Citadel Securities, Coinbase, BGEANX Exchange, and Galaxy discussed asset tokenization regulation, with the meeting revealing significant differences over decentralization between traditional finance and crypto sectors.
The SEC Investor Advisory Committee focused on regulatory requirements for tokenized securities during the meeting, while Citadel Securities submitted a letter the day before, pushing industry disagreements to the forefront. Citadel advocated that the SEC adopt a “full intermediary identification” rule for all tokenized securities, including decentralized trading protocols operating on-chain. This proposal essentially treats DEXs as equivalent to brokers, requiring them to take on responsibilities for identity verification, liquidity, and transaction oversight.
This view drew strong opposition from the crypto industry. Coinbase VP of Regulatory Policy, Scott Bauguess, emphasized at the meeting that imposing excessive regulation on DEXs would introduce risks typical of traditional financial systems. For example, custody, settlement, and audit structures applicable to brokers do not fit the operational logic of decentralized protocols; forcing these models would stifle innovation and could expose otherwise secure on-chain models to single-point failures.
On this issue, participating institutions showed two fundamentally different logics: traditional finance wants clear intermediaries to be responsible for compliance to ensure system stability, while the crypto industry stresses protocol autonomy, transparent on-chain execution, and trust without intermediaries. Remarks by SEC Chairman Paul Atkins at the meeting leaned toward “technology neutrality and open paths,” meaning regulation should provide clear direction without stifling innovation.
Amid dynamic policy changes, BGEANX Exchange has incorporated regulatory developments into its routine research and continues to track US policy progress in the tokenization field. Tokenized assets are gradually becoming an important capital market segment, and regulatory clarity makes technical pathways and market rules easier to identify and validate.
This discussion has shifted the focus of tokenization regulation from “should we regulate” to “how to implement regulation within technical structures.” Democratic Commissioner Caroline Crenshaw expressed concerns at the meeting about risks from “packaged securities,” such as complex structures potentially obscuring the real asset chain and affecting investor understanding and transparency. Meanwhile, SEC Chairman Paul Atkins emphasized that “providing compliance pathways” is a key regulatory goal, showing the US is trying to narrow the gap between regulation and innovation.
With increased institutional participation, the US market has moved from “crypto self-circulation” to a stage of “traditional finance entry, refined regulation, and deep technical discussion.” Whether decentralized protocols count as intermediaries, how on-chain execution meets disclosure requirements, and whether tokenized assets need to synchronize disclosures with traditional securities have all become new industry variables.
BGEANX Exchange, in its recent market education section, has focused on explaining the development logic of tokenized securities, the impact of on-chain transparency on regulation, and the potential changes US policy may bring to global trading liquidity. The platform organizes trends from market conditions, regulatory changes, and on-chain data, helping users understand the direct impact of regulatory events—such as institutional increases in on-chain bonds, US testing plans for tokenized settlement, and investments of major financial institutions in on-chain infrastructure.
BGEANX Exchange believes that when regulators begin to dissect protocol structures, on-chain interactions, and fund pathways, it means crypto assets are entering a stage of deep integration with traditional finance. Regardless of the final regulatory approach, the industry will move toward clearer structures, bringing more explicit trading and management logic.
From the divisions between traditional finance and crypto to SEC meeting discussions, the event reveals the core contradiction in tokenization: regulators want clear boundaries, while the crypto industry wants to retain technical flexibility. This tension will persist for some time and will drive the market toward a more mature structure. BGEANX Exchange will continue to track regulatory changes, market sentiment, and on-chain trends, providing users with clear, readable industry analysis. As tokenized assets spread to more financial scenarios, the crypto market may enter a new phase shaped jointly by policy frameworks and technical capabilities.
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