SEC Chair Predicts Full U.S. Market Migration to Blockchain Within Two Years
The U.S. financial system could undergo a profound transformation within the next two years, with blockchain technology poised to underpin the entire market, according to Securities and Exchange Commission (SEC) Chair Paul Atkins.
In recent remarks, Atkins outlined a vision in which tokenization and digital assets fundamentally reshape market infrastructure, promising improved transparency, faster settlements, and enhanced risk management.
Tokenization and Blockchain: A Market Revolution
Atkins emphasized that the transition involves converting traditional assets, including stocks, into blockchain-based digital tokens.
Tokenization allows for fractional ownership and the automation of post-trade processes through smart contracts, potentially eliminating the multiple intermediaries and multi-day settlement cycles that currently dominate the financial system.
By enabling near-instant, atomic settlement, where asset ownership and payment occur simultaneously, the move is expected to reduce counterparty risk, operational costs, and delays while boosting market efficiency.
“Blockchain adoption across U.S. markets is not a distant prospect; it’s an imminent transformation,” Atkins said, highlighting the benefits of on-chain settlements and automated processes in reducing discrepancies and systemic risks.
Regulatory Clarity as a Catalyst
A critical element of this shift, according to Atkins, is the SEC’s initiative known as Project Crypto, which seeks to provide clear guidelines for digital assets. This includes defining which tokens qualify as securities and which function as commodities or utilities, offering legal certainty that could encourage institutional adoption.
Atkins noted that previous regulatory ambiguity has driven some innovation offshore. With a transparent framework, major financial institutions can confidently participate in blockchain-based markets while maintaining investor protections. Exchanges such as Nasdaq are already exploring integration of blockchain at the post-trade level, signaling strong institutional interest in the approach.
Impact on Market Structure and Access
The tokenization of the U.S. financial market promises far-reaching consequences. Beyond efficiency gains, Atkins expects liquidity improvements for assets that were traditionally illiquid, broadening market access and enabling fractional ownership of equities, real estate, and private equity. Smart contracts will streamline compliance, automate dividend payments, and cut human error, while digital-ledger systems may operate around the clock, providing a fully automated global market.
“The combination of tokenization, automation, and blockchain infrastructure will unify traditional and digital finance,” Atkins said. “This modernization will increase transparency, reduce settlement risks, and support long-term market stability.”
While ambitious, Atkins’ timeline highlights a regulatory pivot toward embracing digital innovation rather than resisting it. By 2027, U.S. markets could see a fundamental modernization of operations, aligning with broader global trends in financial technology.
For investors and institutions, the promise of faster, safer, and more transparent markets marks a new era, one in which blockchain moves from peripheral experiment to central infrastructure.
