Source: Fortune
Summary
The SEC confirmed in 2026 that tokenized securities are classified as securities and proposed major changes to the registered-offering framework. These moves are part of a long history of market evolution, according to OTC Markets Group CEO. The CEO highlighted how information transparency has been central to market development since the 1790s. OTC Markets Group operates a digital platform for securities trading, with $453 billion in trading volume in the first half of 2026. The SEC’s reform aims to expand access to public capital for more companies. The CEO said the changes reflect a long-standing principle: disclosure, not size, should determine access to public markets.
Our Reading
The numbers tell one story.
SEC confirmed tokenized securities are securities.
Proposed reform could change how 81% of companies raise capital.
OTC Markets Group sees $453 billion in trading in 2026.
Transparency remains the key to market trust and access.
Author: Evan Null
250 Years of Market Evolution
The history of American public markets began in 1792 with a group of brokers under a buttonwood tree. They created a private system for trading securities, where information was scarce and prices were negotiated directly. This early market lacked transparency, setting the stage for future reforms.
Over time, the market expanded through technological advancements. The introduction of the telegraph, ticker tape, and telephone helped move information faster, widening the market and improving access. These changes were crucial in shaping the modern financial system.
The 1930s brought significant regulatory reforms, including the creation of the SEC. These reforms established a legal framework for public markets, requiring companies to disclose financial information to investors. This shift laid the foundation for the modern disclosure-based system.
The OTC market, which operated outside this framework for much of its history, has evolved significantly. From the “Pink Sheets” to digital platforms, the market has adapted to new technologies, improving transparency and access for a broader range of companies.
Today, the OTC Markets Group facilitates trading in over 12,000 securities, with a significant portion of trading volume coming from international companies. The SEC’s recent proposals aim to further expand access to public capital, reinforcing the principle that disclosure should determine market access, not company size or prestige.
The SEC’s Dual Push
In 2026, the SEC made two key moves that could reshape American public markets. First, it confirmed that tokenized securities are still classified as securities. This decision clarifies the regulatory status of digital assets and ensures they are subject to the same rules as traditional securities.
Second, the SEC proposed a major overhaul of the registered-offering framework. This reform would allow more companies to raise capital through public offerings, expanding access to capital for a broader range of businesses. The changes aim to modernize the system and make it more inclusive.
The SEC’s actions reflect a long-standing commitment to transparency and fair dealing. By reinforcing disclosure requirements, the agency ensures that investors have the information they need to make informed decisions. This approach has been central to the development of American public markets.
The proposed reforms also align with the principles that have guided market evolution for over two centuries. By focusing on disclosure rather than company size or listing venue, the SEC is promoting a more equitable system where all companies have the opportunity to access public capital.
These changes come at a time when digital technology is reshaping the financial landscape. The SEC’s efforts to ensure transparency in the digital age will be crucial in maintaining trust and stability in public markets.
The Role of OTC Markets Group
OTC Markets Group operates a digital platform that facilitates trading in over 12,000 securities. The company provides a marketplace for companies at different stages of growth, offering access to U.S. investors. This platform has become a key part of the broader financial ecosystem.
In the first half of 2026, the OTC Markets Group reported $453 billion in trading volume, with expectations of reaching $900 billion for the year. This growth highlights the increasing importance of the OTC market in the global financial system.
The company’s role extends beyond just facilitating trades. It also helps companies meet disclosure requirements, ensuring that investors have access to the information they need. This focus on transparency has been a cornerstone of the OTC market’s development.
OTC Markets Group has also adapted to new technologies, including digital asset securities. The company is working with regulators to ensure that these new forms of investment are integrated into the existing market structure while maintaining the same high standards of transparency and fairness.
As the financial landscape continues to evolve, OTC Markets Group remains a key player in the development of public markets, helping to bridge the gap between traditional and emerging financial technologies.
The Future of Public Markets
The future of public markets is being shaped by technological advancements and regulatory changes. As digital assets become more prevalent, the need for clear regulatory frameworks becomes more urgent. The SEC’s recent actions reflect a commitment to ensuring that these new forms of investment are integrated into the market without compromising transparency or fairness.
The proposed registered-offering reforms could have a significant impact on how companies raise capital. By expanding access to public markets, the reforms could reduce the reliance on private placements, which often involve steep discounts and significant dilution for existing shareholders. This shift could lead to a more equitable and efficient capital formation process.
Public markets have always been a key driver of economic growth. By providing a platform for companies to raise capital and for investors to participate, they enable innovation and expansion. The continued evolution of these markets will be crucial in supporting the next generation of businesses.
As the financial system becomes more interconnected, the role of transparency and disclosure will only grow in importance. Regulators, market operators, and companies must work together to ensure that the principles that have guided public markets for centuries remain relevant in the digital age.
The ongoing development of public markets reflects a broader trend in the financial industry: the need for adaptability, innovation, and a commitment to fairness. These principles will be essential in shaping the future of American public markets.
Transparency and the Democratization of Capital
Transparency has always been a cornerstone of public markets. From the early days of the buttonwood tree to the modern digital platforms of today, the ability to access accurate and timely information has been essential for fair dealing and informed decision-making. This principle remains as important as ever in the evolving financial landscape.
The SEC’s recent proposals emphasize the importance of transparency in the context of new technologies. As digital assets and programmable securities become more common, ensuring that these innovations align with the same standards of disclosure and fairness as traditional markets will be critical. This will help maintain investor confidence and prevent the emergence of new risks.
The democratization of capital is another key theme in the evolution of public markets. By expanding access to public capital, the reforms aim to create a more inclusive system where companies of all sizes and from all backgrounds can participate. This shift could lead to greater competition, innovation, and economic growth.
Public markets have always been a reflection of the broader economic and social environment. As the financial system becomes more complex, the need for clear, consistent, and enforceable regulations becomes more pressing. The SEC’s actions are a step toward ensuring that the market remains a fair and effective mechanism for capital formation.
Ultimately, the future of public markets will depend on the ability of regulators, market operators, and companies to work together to uphold the principles of transparency, fairness, and accessibility. These values have guided the development of American public markets for over two centuries, and they will continue to shape their future.
