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POLICY/ REGULATION
 May 13, 2025    |    6 months ago

Wall Street Meets Web3: Inside the SEC’s Bold Push to Unite Traditional Finance and Crypto

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Joseph Razo

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Washington, D.C. — In a pivotal shift poised to redefine the financial landscape, the U.S. Securities and Exchange Commission (SEC) hosted a high-stakes roundtable this week, signaling a dramatic evolution in its stance toward digital assets.

 

 

The event, titled “Tokenization: Moving Assets Onchain—Where TradFi and DeFi Meet,” wasn’t just a policy update—it was a watershed moment where old money met new tech.

 

 

Held behind closed doors in the nation’s capital but rippling across markets worldwide, this roundtable brought together a formidable roster: BlackRock, Fidelity, Nasdaq, Invesco, Franklin Templeton, and Apollo Global Management. These names aren't just finance giants—they’re the architects of legacy wealth.

 

 

Their unified presence at a blockchain-focused event marked a stark departure from past skepticism, underscoring a single, seismic message: crypto is going institutional.

 

 

The SEC’s Regulatory Reset: A Framework for the Future

 

 

The headline announcement came from SEC Chair Paul Atkins, who unveiled plans to introduce a comprehensive crypto regulatory framework—one designed to finally bring clarity to the long-ambiguous world of digital finance. Key pillars of the proposed framework include:

 

  • A modern classification system for digital tokens and utility assets

 

  • Legal clarity for broker-dealers to trade mainstream cryptocurrencies like Bitcoin and Ethereum

 

  • Updated custody protocols for tokenized securities and digital asset management

 

  • Structured oversight for stablecoins, focusing on liquidity reserves, real-time audits, and transparency

 

 

This isn’t regulatory patchwork—it’s a blueprint designed to scale. One that could unlock trillions in capital, attract institutional investors hesitant about murky compliance rules, and finally bring crypto under a structured regulatory umbrella.

 

 

From Disruption to Infrastructure: The Shift in Tone

 

 

Gone are the days when blockchain was branded as a rogue technology threatening financial order. The tone at the SEC’s summit was sharp, strategic, and bullish.

 

 

Executives spoke candidly. Blockchain is no longer a disruptive tech that needs to be contained. Its core infrastructure is to be deployed. In other words, the institutions aren’t circling the space anymore—they’re preparing to dive headfirst.

 

 

Panelists outlined use cases ranging from programmable money and 24/7 settlement systems to asset tokenization and decentralized identity. These are not speculative white papers—they're real-world applications with regulatory traction.

 

 

Tokenization Steals the Spotlight

 

 

Central to the discussions was tokenization—the process of moving real-world assets like stocks, bonds, real estate, and even art onto blockchain networks. Estimates suggest over $16 trillion in tokenized assets could hit blockchain rails by 2030. This transformation promises:

 

  • Fractional ownership of previously illiquid assets

 

  • Near-instant settlement and 24/7 global markets

 

  • Tamper-proof audit trails and enhanced transparency

 

  • Programmable finance through smart contracts

 

 

What’s emerging is a decentralized Wall Street—one that never sleeps, never settles late, and doesn’t need a middleman to validate ownership.

 

 

The Rise of Utility Protocols: XRP, HBAR, LINK & More

 

 

Amid the talk of compliance and infrastructure, a few names surfaced repeatedly: XRP, HBAR, ALGO, LINK, ADA, and XLM. These aren’t the meme coins of past cycles. These are infrastructure-grade protocols, chosen for their scalability, regulatory alignment, and real-world utility.

 

 

Why Are They Gaining Traction?

 

 

  • XRP for cross-border payments and settlement speed

 

  • HBAR for enterprise-grade public ledgers and energy efficiency

 

  • LINK for smart contract data interoperability

 

  • ALGO and ADA for their role in scalable, low-cost networks

 

  • XLM for remittances and financial inclusion

 

 

These assets serve as the digital plumbing for tokenized finance. Think less “number go up” and more “protocols that power trillion-dollar flows.”

 

 

Roundtable Highlights: Two Panels, One Unified Vision

 

 

The event featured two marquee panels, each tackling critical components of the future financial stack:

 

 

Panel 1: Capital Markets 2.0

 

 

This session dissected how blockchain could eliminate T+2 settlement, reduce reliance on clearinghouses, and democratize investment through fractional ownership of high-value assets like real estate and private equity. In short: Wall Street wants speed, transparency, and efficiency—and blockchain delivers.

 

 

Panel 2: The Future of Tokenization

 

 

This segment addressed interoperability, smart contract auditing, and how public chains must coordinate with private ledgers to build compliant, global ecosystems. The emphasis was on collaboration, not competition—a key theme as TradFi and DeFi begin to converge.

 

 

Why Institutions Are Finally All In

 

 

Behind this newfound openness is a cold business reality: evolve or be left behind. From tokenized treasuries to private credit, institutions are realizing that blockchain-native models offer not just innovation but strategic survival.

 

 

As global finance speeds toward a post-paper economy, the ability to digitize and automate value is no longer optional—it’s essential. Even retail investors stand to gain. A regulated environment enables:

 

 

  • Safer access to decentralized finance (DeFi)

 

  • Tokenized investment vehicles within brokerage apps

 

  • Yield-bearing stablecoins and programmable portfolios

 

 

The barriers to entry are dropping, while access to sophisticated, blockchain-based financial tools is expanding.

 

 

The Bigger Picture: What This Means for Crypto

 

 

For years, crypto advocates have clamored for regulatory clarity. Now, they may be getting more than they expected. With it comes structure, oversight, and mainstream legitimacy. The meeting marks a pivotal shift in sentiment: crypto is not the enemy of financial order—it’s the engine of its next evolution.

 

 

And for the first time, Washington seems ready to write the playbook instead of stalling the game.

 

 

How This Impacts Ethereum, Bitcoin, and XRP

 

 

The SEC’s move toward regulatory clarity isn’t just a green light for institutions—it’s a catalytic force for major cryptocurrencies that already power much of the blockchain economy.

 

 

Ethereum (ETH) stands to benefit immensely. As the foundation for smart contracts and tokenization protocols, Ethereum is positioned as the programmable backbone of Web3. Regulatory support would solidify its role in decentralized finance (DeFi), tokenized securities, and automated compliance systems.

 

 

With Ethereum’s transition to proof-of-stake and increasing institutional adoption of Layer 2 networks, it becomes even more attractive for scalable, secure, and eco-friendly financial applications.

 

 

Bitcoin (BTC) gains legitimacy through legal clarity. As the most recognized and widely held digital asset, Bitcoin has long been viewed as a store of value and hedge against inflation.

 

 

The SEC’s framework could open the door for regulated brokers and retirement funds to offer direct exposure, sparking fresh demand from pension funds, ETFs, and sovereign wealth portfolios. A clearer path for Bitcoin in traditional finance may also reduce volatility and improve its perception as digital gold.

 

 

XRP is perhaps the most strategically positioned among the utility tokens. Built for fast, low-cost cross-border transactions, XRP aligns closely with institutional priorities: speed, liquidity, and regulatory compliance.

 

 

With the potential for XRP to be relisted on major U.S. exchanges and used in tokenized settlement rails, this framework could serve as a springboard for its reintegration into global financial systems, especially in sectors like banking, remittances, and CBDC interoperability.

 

 

Each of these assets brings something distinct to the table:

 

 

–Ethereum powers the infrastructure

 

–Bitcoin anchors digital value

 

–XRP connects liquidity and real-time settlement

 

 

These aren't just crypto assets in a regulated environment—they're building blocks for a new financial architecture.

 

 

Challenges Ahead—But Momentum Is Real

 

 

Of course, legal and political hurdles remain. There are still debates over jurisdiction, privacy, taxation, and international standards. But the momentum is undeniable.

 

 

The United States has a rare chance to lead the world in shaping the next-gen financial system. Falling behind isn’t just bad policy—it’s a competitive risk with global implications.

 

 

The Bottom Line

 

 

This week’s roundtable may someday be remembered as the moment when the tides truly turned. A moment when regulators, legacy firms, and blockchain pioneers sat at the same table—not to clash, but to collaborate.

 

 

It wasn’t about slogans or speculation. It was about building a new financial operating system—one that’s global, digital, and equitable by design. As digital assets graduate from the outskirts to the core of capital markets, one thing is clear:

 

 

The future of finance is on-chain. And it’s already being written.

 


 

 

DISCLAIMER

On-Chain Media articles are for educational purposes only. We strive to provide accurate and timely information. This information should not be construed as financial advice or an endorsement of any particular cryptocurrency, project, or service. The cryptocurrency market is highly volatile and unpredictable.Before making any investment decisions, you are strongly encouraged to conduct your own independent research and due diligence

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