SEC Commissioner Proposes Transatlantic Sandbox for Tokenized Securities Experimentation
Summary:
Hester Pierce, Securities and Exchange Commissioner, proposed a transatlantic testing ground or "sandbox" for U.S and U.K blockchain firms to experiment with tokenized securities. This comes after both the Bank of England and UK's Financial Conduct Authority suggested creating a zone for blockchain firms to test tokenized securities without fear of regulatory consequences. In a meeting at Consensus 2024, Pierce underscored the benefits of such a program. She also provided guidelines for implementing this sandbox program.
Hester Pierce, Commissioner for the Securities and Exchange Commission, recently proposed the idea of a transatlantic testing ground, or "sandbox", for UK and US blockchain firms developing tokenized securities. Such a proposition follows a joint suggestion by the Bank of England (BOE) and the Financial Conduct Authority (FCA) in the UK to establish a permitted zone where blockchain businesses can try out the issuance and trading of tokenized securities without regulatory interference.
In a recent panel discussion at Consensus 2024, Pierce elucidated the advantages of a cross-boundary collaboration for investigating tokenized assets. Cointelegraph's Turner Wright quotes Pierce stating that the idea allows for the accumulation of a larger data set from these trials, providing they happen under specified activity caps.
This, in turn, could potentially put some pressure on the SEC in its lack of action with regards to businesses seeking regulatory exemptions. The Commissioner also provided guidelines for a combined digital securities sandbox program, collaborating with trusted blockchain companies based in the US and UK.
Apart from determining the scope of approved activities within the digital securities sandbox, these guidelines also include determining limits on these activities, based on feedback from the public and industry stakeholders, and under the watchful eye of regulatory bodies on both the Atlantic sides. The Commissioner’s letter also underscores potential benefits that securities tokenization can bring about in terms of reduced transaction expenses, accelerated settlement conclusion, and better transparency for investors and market players.
Published At
5/30/2024 10:38:57 PM
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