Foreign media have commented that two actions taken by the U.S. Securities and Exchange Commission (SEC) this year regarding public markets may simultaneously impact both traditional securities financing and the development of digital securities. One is reaffirming that tokenized securities remain securities, and the other is proposing reforms to the registration and issuance system to expand public financing eligibility for more publicly listed companies.
Both actions fall on the same main line.
The author of this opinion piece is the CEO of OTC Markets Group. The article argues that over the past two centuries, the evolution of the U.S. public markets has centered on increasing transparency of price information and corporate disclosures, enabling more companies and investors to participate in the market.
Under this framework, in January, the SEC confirmed that tokenized securities do not escape existing securities regulations simply due to changes in technological form. By May, the SEC proposed reforms to the registration and issuance system, which the author described as the most significant adjustment in over twenty years.
Reform focuses on financing for small and medium-sized enterprises.
According to the article, this proposal would make financing tools such as shelf registration and at-the-market offerings available to approximately 81% of listed companies. In the past, some growth-oriented companies, due to restrictive conditions, often had to raise capital through deeply discounted private placements, making existing shareholders more susceptible to dilution.
The author believes that if the reforms are ultimately implemented, such companies will regain access to more transparent public financing channels for the first time in many years. At that point, a company’s ability to enter public capital markets may depend more on its capacity for continuous disclosure than on its balance sheet size or listing location.
- The article states that OTC Markets currently supports trading for over 12,000 securities.
- Its data shows that the trading volume reached $453 billion in the first half of 2026.
- At this rate, annual trading volume could approach $900 billion.
Tokenized securities still require adherence to disclosure principles.
Regarding digital securities, the article argues that market infrastructure is evolving toward institutional-grade trading, clearing, and custody capabilities, but the core regulatory principles remain unchanged. That is, once securities are issued in tokenized form, they must still comply with fundamental requirements for disclosure and transparency of material facts.
The author states that technology can transform ownership records, transaction pathways, and investor outreach, but it cannot undermine the transparency principles that public markets have long relied upon. For digital asset securities, the next priority is not to redefine securities, but to align existing disclosure requirements with new technologies.
The OTC market aims to accommodate more public fundraising.
The article also highlights the role of the OTC market within the U.S. capital market system. The author argues that, from the OTC market to Nasdaq and then to the NYSE, different market tiers collectively fulfill the functions of financing, pricing, and investor selection.
In his view, if the SEC ultimately completes this round of reforms, the biggest beneficiaries will be growth-oriented public companies that have traditionally relied more on private financing. For the U.S. public markets, this is not just a change in issuance procedures—it could also reshape which companies are better suited to remain in public markets for fundraising and growth.