In a bold declaration that signals a seismic shift in American finance, U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins has predicted that the entire U.S. financial system could transition to blockchain technology within the next two years.
Speaking in an exclusive interview on Fox Business' Mornings with Maria on December 3, 2025, Atkins emphasized that this evolution would center on the tokenization of assets and the digitization of markets, ushering in an era of unprecedented transparency, efficiency, and risk management.
"The next step is coming with digital assets and digitization, tokenization of the market," Atkins told host Maria Bartiromo, adding that the changes could materialize far sooner than the decades-long timelines often cited by skeptics.
Atkins' optimism stems from rapid advancements in electronic trading and blockchain infrastructure, which he described as the biggest transformation in U.S. markets since the advent of computerized systems. He highlighted how tokenization - converting traditional assets like stocks, bonds, and real estate into digital tokens on a blockchain - could eliminate longstanding inefficiencies.
For instance, companies today often struggle to track real-time ownership of their shares due to fragmented legacy systems. Blockchain's immutable ledger would enable instantaneous visibility into ownership structures, reducing errors and disputes. Moreover, Atkins pointed to the potential for atomic settlements, where trades execute and clear simultaneously on-chain, slashing the multi-day delays that currently expose markets to counterparty risks and liquidity crunches.
This vision aligns with Atkins' broader "Project Crypto" initiative, launched in July 2025, which aims to modernize SEC regulations to foster American leadership in digital finance. Under the project, the SEC is developing a "token taxonomy" to classify digital assets clearly - distinguishing securities from non-securities like digital commodities or tools - while streamlining rules for custody, trading, and tokenized securities.
Atkins has advocated for an "innovation exemption" to allow developers to experiment with on-chain models without immediate regulatory burdens, ensuring the U.S. doesn't cede ground to global competitors. "Decentralized finance and other forms of on-chain software systems will be part of our securities markets and not drowned out by duplicative or unnecessary regulation," he stated in a November 12 speech at the Federal Reserve Bank of Philadelphia.
Recent regulatory green lights underscore the momentum behind Atkins' timeline. On December 11, 2025, the SEC issued a pivotal No-Action Letter to the Depository Trust Company (DTC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), authorizing a pilot for tokenizing DTC-custodied assets.
This service, dubbed DTCC Tokenization Services, will initially record security entitlements - such as shares in the Russell 1000 index (covering the 1,000 largest U.S. companies), major index-tracking ETFs, and U.S. Treasuries - on distributed ledger technology (DLT) blockchains. Participants can opt in to "Tokenized Entitlements," leveraging blockchain's benefits like 24/7 mobility across borders, decentralization for direct access, and programmability via smart contracts, all while maintaining DTC's safeguards as a central securities depository.
The DTC pilot, set to roll out in the second half of 2026, represents a controlled step toward broader adoption, with DTC having consulted industry stakeholders for over nine years on DLT integration. It excludes a small subset of participants with U.S. tax or Treasury International Capital reporting obligations initially, but aims to expand once compliance is resolved.
This move builds on earlier SEC guidance, including a April 2025 statement from the Division of Corporation Finance clarifying disclosure requirements for tokenized offerings and Commissioner Hester Peirce's July remarks encouraging tokenized securities under existing rules.
Beyond equities, tokenization is gaining traction in other sectors. The Commodity Futures Trading Commission (CFTC) issued guidance on December 8, 2025, supporting tokenized collateral for derivatives, with a pilot program to test blockchain-based margin and settlement by August 2026.
Industry players like Ondo Finance and Citadel Securities have submitted feedback to the SEC's Crypto Task Force, advocating for safe harbors and public blockchains to enable retail access to tokenized products.
Stablecoins, seen as the "backbone" for on-chain settlements, are also central to Atkins' blueprint, with legislative pushes like the GENIUS Act providing regulatory clarity.
Critics, however, caution that such rapid adoption could introduce new risks, including cybersecurity threats and regulatory gaps in decentralized systems. Yet Atkins dismisses decade-long transitions as outdated, insisting banks and institutions are already pivoting: "This is not about decades; it's about the next few years."
If his prediction holds, by 2027, Wall Street could be fully on-chain, potentially unlocking trillions in liquidity and positioning the U.S. as the undisputed "crypto capital of the world," as envisioned by President Trump.
As markets digest these developments, investors and innovators alike are watching closely. The blockchain revolution, once confined to crypto enthusiasts, now appears poised to redefine the $100 trillion U.S. capital markets - faster than anyone imagined.
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Author: Slava Vasipenok
Founder and CEO of QUASA (quasa.io) - Daily insights on Web3, AI, Crypto, and Freelance. Stay updated on finance, technology trends, and creator tools - with sources and real value.
Innovative entrepreneur with over 20 years of experience in IT, fintech, and blockchain. Specializes in decentralized solutions for freelancing, helping to overcome the barriers of traditional finance, especially in developing regions.
This is not financial or investment advice. Always do your own research (DYOR).
