Commissioner Uyeda spoke at the Securities and Exchange Commission’s 30th Annual Institute for Securities Market Growth and Development. Commissioner Uyeda focused on the need to root out bad actors and promote transparent disclosures to promote market integrity and confidence. The Commissioner noted that removing bad actors from the market should lower the cost of capital. He pointed out that regulation should be cost-efficient. Commissioner Uyeda noted that reducing the costs might be achieved by eliminating duplicative regulations and cooperating with international regulators in their efforts to oversee markets. He also touched on the role of new technologies in achieving efficiencies, like tokenization. He noted that, “[t]okenization may provide transactions with a higher level of security, transparency, and immutability. It also may remove the need for most intermediaries, streamlining the process and reducing transaction costs.” He pointed to the November 2023 UK Financial Conduct Authority’s blueprint on implementing tokenization for FCA-authorized funds, followed by a March 2024 interim report on use cases and next stages for fund tokenization. These, he noted, are good models for other regulators to consider as they evaluate tokenization and the role it might play in reducing transaction costs. See the full text of his remarks here.
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