An advisory committee of the U.S. Securities and Exchange Commission (SEC) has recommended that the agency develop a policy on tokenized securities that would allow direct on-chain settlement while bypassing traditional intermediaries. The proposal calls for limited exemptions for blockchain-based equity trading, contingent upon mandatory information disclosure and external regulatory oversight, while reaffirming that these assets remain legally classified as securities. SEC Chair Paul Atkins praised the initiative's potential to improve efficiency and reduce risk, stating that the Commission is formulating formal regulatory provisions and expects to consider an exemption provision soon to facilitate limited trading of certain tokenized securities.