Yasuda on Tokenization

On February 4, 2025, the Depository Trust & Clearing Corporation (DTCC) unveiled ComposerX, a comprehensive suite of platforms designed to manage digital assets throughout their entire lifecycle. ComposerX includes three key components: the Capital Markets Platform (CMP) for token lifecycle management, the Factory tokenization engine for creating "self-describing" smart tokens, and LedgerScan for tracking and reconciling token activity across networks. The suite is blockchain-agnostic and supports various tokenization protocols, streamlining the issuance, distribution, servicing, and reporting of digital assets. Leveraging DTCC's patented Compliance Aware Token Framework (CATF), ComposerX ensures real-time regulatory compliance across multi-jurisdictional environments.

ComposerX is already live and supporting several tokenized ETFs operating on multiple public networks. Nadine Chakar, Global Head of DTCC Digital Assets, emphasized that the platform represents a milestone in DTCC's efforts to foster institutional adoption of digital assets while bridging traditional and digital financial infrastructures. The company plans to enhance ComposerX throughout 2025 by adding features to enable greater composability of financial processes.

The U.S. Securities and Exchange Commission (SEC) has taken a significant step toward regulatory clarity with the launch of its Crypto Task Force, announced on January 21, 2025, under Acting Chairman Mark T. Uyeda. Led by Commissioner Hester Peirce, the task force aims to establish a comprehensive framework for digital assets by clarifying securities classifications, creating practical registration pathways, and crafting tailored disclosure requirements. On February 20, 2025, the task force renamed the SEC's Crypto Assets and Cyber Unit to the Cyber and Emerging Technologies Unit, signaling a shift toward proactive regulation rather than reactive enforcement. The initiative emphasizes collaboration with Congress, other federal agencies, and international counterparts to foster innovation while protecting investors.

In a parallel development, President Donald Trump announced on March 2, 2025, the creation of a U.S. Strategic Crypto Reserve to include major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). This initiative is part of Trump's broader push to position the U.S. as a global leader in blockchain and digital assets. The announcement caused a surge in crypto prices, with ADA gaining over 68% and XRP rising by 33%. Trump's executive order in January had directed the Presidential Working Group to advance this reserve concept, culminating in the upcoming White House Crypto Summit on March 7, where further details are expected.

The European Union has intensified its regulatory framework for crypto-assets under the Markets in Crypto-Assets (MiCA) regulation. On February 27, 2025, the European Commission adopted new delegated acts, including Regulatory Technical Standards (RTS) that require crypto-asset service providers (CASPs) to maintain comprehensive records of services, transactions, and conflict of interest management policies. These measures aim to enhance transparency, market integrity, and consumer protection throughout the EU's crypto ecosystem.

Additionally, on February 20, 2025, the EU published both RTS and Implementing Technical Standards (ITS) in the Official Journal of the European Union. These standards require CASPs to notify competent authorities before providing crypto services within the EU. The regulations will officially take effect on March 12, 2025, further implementing MiCA's licensing and supervisory framework.

The UK government has made significant strides in crypto regulation in early 2025. On February 27, 2025, the Financial Conduct Authority (FCA) released its updated "Crypto Roadmap," detailing plans to implement stricter rules for cryptoasset trading platforms, intermediation, lending, and staking services. The roadmap introduces a Market Abuse Regime for Cryptoassets (MARC) and an Admissions and Disclosures (A&D) regime, requiring issuers to meet transparency standards and disclose risks. These measures aim to enhance market integrity and align UK regulations with international benchmarks. The MARC regime will prohibit insider trading and market manipulation, with provisions expected to take effect progressively from Q3 2025.

Additionally, the government confirmed its intention to implement a unified regulatory framework for stablecoins alongside broader crypto activities. This decision rejects the previously proposed phased approach, opting instead for simultaneous regulation of stablecoins and other digital assets under the Financial Services and Markets Act (FSMA). The FCA has been empowered to establish enforceable rules for crypto firms, addressing gaps in the existing framework.