Sonnenshein, COO of Securitize, on Crypto's Emerging Phase: 'Litigation Declining, SEC Engaging'

The U.S. cryptocurrency sector has reached a major milestone, thanks to the White House's support, according to Michael Sonnenshein, Chief Operating Officer of Securitize. In an interview on Bloomberg TV, the ex-Grayscale CEO discussed the noticeable shift in the White House's approach to the cryptocurrency industry. Unlike the Biden administration's enforcement-centric tone, the Trump administration is now signaling a more collaborative stance on innovation.

"It's really night and day," Sonnenshein commented. "Previously, crypto was functioning under a regime of regulation through enforcement. Now, lawsuits have been dismissed, the White House has appointed a head of crypto, and the SEC has established a task force that actively engages with businesses."

This new regulatory environment, Sonnenshein believes, is creating the foundation for the rapid growth of tokenized real-world assets. Securitize, which operates the largest tokenization platform to date, has already tokenized nearly $2.5 billion worth of assets, from treasuries to public equities, on public blockchains such as Ethereum and Polygon.

Sonnenshein emphasized that tokenization offers unique benefits beyond blockchain hype, such as daily dividends, instant liquidity, and round-the-clock access. These advantages are not available to investors in "traditional financial products," he stated.

He cited the company's partnership with BlackRock on the BUIDL tokenized treasury fund as a prime example, highlighting its ability to offer real-time redemptions and use in DeFi ecosystems.

As tokenized treasuries and equities continue to grow, Sonnenshein anticipates the momentum to persist throughout the year. He mentioned that Securitize is witnessing growth rates above 500% in tokenized treasuries alone and recently achieved milestones such as the tokenization of Exodus, a publicly traded company.

Regarding the SEC's leadership transition, Sonnenshein underscored the importance of maintaining dialogue. "If we're going to expand access to RWAs or revisit accredited investor definitions, that collaboration with regulators is crucial," he said.