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SEC Targets Tokenization, AI and Quantum Computing
The Securities and Exchange Commission (SEC) has identified tokenized securities, artificial intelligence, and quantum computing as areas of heightened scrutiny in its fiscal year 2027 examination priorities. The SEC's Division of Examinations noted these technologies as emerging trends that will inform its oversight of regulated financial institutions, including clearing agencies, securities exchanges, broker-dealers, and investment advisers. Tokenization, which involves representing traditional financial assets as digital tokens on blockchain networks, is mentioned in two separate sections of the report. The SEC also identified tokenized securities as an emerging concern under Regulation Systems Compliance and Integrity (SCI), focusing on emerging trends such as AI, tokenization of securities, extended trading hours, and quantum computing.