Tokenization is moving faster than Washington can keep up.

What is the token market?

Tokenization is the conversion of traditional assets, such as stocks in a stock exchange, into digital tokens on a blockchain, allowing them to be bought and sold at all times, subdivided more thoroughly, and tracking ownership directly from the blockchain.

The financial conversation is no longer about whether blockchain technology will enter traditional capital markets, but how existing markets will incorporate this technology and what rules govern the transition.

Who came up with this?

Andrew Cuomo, the former governor of New York who is now on the board of OKX , a major buyer and seller, has spoken out about this issue. He emphasized that tokenization does not eliminate financial risk or remove regulatory oversight. Markets operate on trust; new technologies succeed only when investors believe rights are real, businesses can be trusted, markets are fair, and wrongdoers are punished.

Why does this person know so much about it?

Cuomo learned this lesson from the other side of the table, when he was New York attorney general during the financial crisis. He saw what happened when innovation and financial engineering moved faster than regulation and risk management; subprime mortgages and increasingly sophisticated debt securities were touted as innovations that expanded access to commodities and distributed risks but ultimately weakened credit ratings and preventative measures that not only spread risk throughout the entire financial system.

The lesson is not that financial innovation should stop, but rather that innovation and regulation must evolve together.

SEC . What are you doing now?

According to Cuomo, the U.S. Securities and Exchange Commission (SEC) ( SEC ) is taking such a course through an exemption system that isn't freely enabled but has clear conditions:

• Participants must be permitted. Everyone entering the premises must be approved.
• It's equal rights. A token that is traded under an exemption must give investors rights and benefits comparable to the same type of stock in its original form.
• The quantity is limited. A trading venue has a limit on the number and amount of tokenized assets that can be traded.
• Shareholders have the right to object. If an uninvolved third party brings their shares to TokenNix, the issuer can object.
• Genius contracts have to be verified. smart contracts needs to be auditable and executed on a public blockchain.
• Stop together. The trading of token-like securities must stop when the original security is suspended

How has it impacted readers in Thailand and Myanmar?

If the U.S.'s SEC framework works, it could become a model for other countries including Thailand, where the SEC (Thailand) has a history of systematically regulating crypto markets and is home to major players such as Bitkub in the dollar-denominated trading market ( THB ). The globalization of tokens may open up greater access to foreign assets for retail investors in Taiwan and Myanmar.

Cuomo's conclusion was that trust is at the heart, technology can change buying patterns but regulators role in streamlining markets has never changed.