Jay Clayton, Chair of the US Securities and Exchange Commission (SEC) said that all stocks can be tokenized using blockchain, to make it more efficient.
Clayton also emphasized that his party is very open to a number of technological breakthroughs in stocks, such as the Exchange Traded Fund (ETF) to make it more efficient.
He conveyed this in a recent webinar, related to technology enrichment on the stock exchange. Clayton says all stock trading today is based on electronics, compared to 20 years ago.
“In the past, there were share certificates and now there are digital entries that represent shares. "It's possible that all of that can be localized one day," Clayton said.
The webinar does focus on raising awareness about blockchain technology and crypto assets. Brian Brooks, Officer of the Office of the Comptroller of the Currency (OCC), also participated in the webinar.
Both Clayton and Brooks say they welcome innovation in the crypto asset space within a clear regulatory framework.
"The short answer is yes. Our regulatory framework and principles have stood the test of time through many innovations, "Clayton said.
Brooks, who was previously on the crypto asset exchange Coinbase, said he believes blockchain technology is inherently more robust and efficient than other types of technology available.
“We have a strong interest in trying to imagine a medium-term future, not a future, tomorrow, where people are speculating about Bitcoin's price movements, but a medium-term future, where this already built blockchain network is basically the Internet for finance. This is also a tremendous type of challenge for the banking sector, "said Brooks.
Many countries have also held trials for tokenization of shares, such as the Beijing Stock Exchange and the Venezuela Stock Exchange, including Hong Kong.
The prediction of the progress of stock tokenization also originates from the OECD study in 2018. They welcome blockchain technology on the stock exchange to make it more efficient and globally affordable.
Previously, the OCC emphasized that all banks in the United States are allowed to open crypto asset custodial services for their customers. It is an important sign that the country welcomes' blockchain technology and crypto assets as a new asset class to trust.