BitGo COO Says Tokenized Securities Need Proactive Regulation
RWA Signal Insight
InfrastructureBitGo Chief Operating Officer Jody Mettler has advised the tokenized securities industry to proactively prepare for impending regulatory shifts as the sector matures. Mettler highlighted recent strategic moves by the Depository Trust & Clearing Corporation (DTCC) as a primary indicator that increased oversight is on the horizon. This call for preparation follows a significant regulatory development on September 17, when the U.S. Securities and Exchange Commission (SEC) granted an exemption for tokenized securities venues. This exemption allows eligible platforms to utilize restricted-access automated market-making systems and liquidity pools for specific tokenized National Market System (NMS) shares. While these systems are subject to strict operating conditions and asset limits, the move represents a formal step toward integrating tokenized assets into traditional market structures. For the RWA market, this signals a transition from experimental pilot programs to a more regulated, institutional-grade environment. Industry participants are now encouraged to align their operational frameworks with these evolving standards to ensure long-term compliance and market stability.
Key points
- BitGo COO Jody Mettler urges industry preparation for heightened regulatory scrutiny of tokenized securities.
- DTCC strategic activities serve as a key signal for upcoming shifts in financial regulation.
- SEC granted an exemption on September 17 for tokenized NMS shares on specific trading venues.
- Exemption permits restricted-access automated market-making systems under defined operational and asset constraints.
Background
The Depository Trust & Clearing Corporation (DTCC) is the central securities depository for the U.S. financial market, providing clearing and settlement services for the vast majority of equity and debt transactions. Its involvement in tokenization projects, such as the Digital Securities Management (DSM) platform, is critical for bridging traditional finance infrastructure with blockchain-based assets. These initiatives aim to modernize post-trade processing by reducing settlement times and operational risks through distributed ledger technology.