The US Securities and Exchange Commission is engaging with industry leaders to discuss a new standard for tokenized securities on the Ethereum network. This move could reshape digital asset regulation.
The U.S. Securities and Exchange Commission (SEC) has recently engaged with prominent blockchain organizations to investigate the potential implementation of an Ethereum-aligned token standard for the issuance and transfer of compliant tokenized securities.
This development indicates a prospective transformation in the SEC's stance regarding digital asset regulation, veering towards a more profound integration of blockchain technology within conventional financial markets.
The SEC’s Crypto Task Force convened with several influential entities, including the ERC-3643 Association, Chainlink Labs, the Enterprise Ethereum Alliance, and the Linux Foundation Decentralized Trust.
Discussions concentrated on how open standards such as ERC-3643 and compliance frameworks like Chainlink’s Automated Compliance Engine (ACE) can effectively bridge on-chain technology with established regulatory mandates.
Dennis O’Connell, president of the ERC-3643 Association, noted a "discernible shift in tone" from the SEC, heralding an enhanced receptiveness to blockchain standards.
Regulatory Evolution and Industry Collaboration
Dennis O’Connell further elucidated that the SEC’s task force was both welcoming and enthusiastic about positioning the United States as a vanguard in the blockchain arena. He underscored that the SEC is now more amenable to industry-driven standards, signifying a notable deviation from their erstwhile approach.
Industry representatives advanced proposals encompassing essential components of a regulatory framework for tokenized securities, including identity, compliance, registry, and control.
While the task force refrained from adopting a definitive stance, they exhibited a willingness to comprehend how emerging blockchain technologies can mitigate concerns surrounding identity, control, and compliance.
This engagement follows several months of collaborative efforts, marking a significant milestone for the industry. The ERC-3643 Association and its partners aspire to perpetuate discussions with the SEC Crypto Task Force and other U.S. governmental entities, aiming to harmonize U.S. regulations with global standards and cultivate leadership.
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SEC Explores ERC-3643 for Tokenized Securities on Ethereum
SEC engages blockchain groups on ERC-3643 token standard for compliant securities, signaling shift toward Ethereum integration in U.S. markets.