EddieJayonCrypto
16 May 25
The US Securities and Exchange Commission (SEC) issued updated guidance clarifying how securities laws apply to broker-dealers and transfer agents using digital assets and distributed ledger technology (DLT). The guidance distinguishes custody rules for non-security crypto like Bitcoin and Ethereum,...
The US Securities and Exchange Commission (SEC) has issued updated guidance clarifying the regulatory framework for broker-dealers and transfer agents using digital assets and distributed ledger technology (DLT). This adjustment distinguishes non-security crypto assets such as Bitcoin and Ethereum from securities, thus defining custody rules and investor protections more clearly.Transfer agents are now permitted to use public blockchains for maintaining official securities records as long as they comply with legal obligations regarding recordkeeping, compliance, security, and accessibility. This change paves the way for broader institutional adoption of on-chain fund operations, potentially lowering costs and enhancing operational efficiency in the $132 trillion global fund-administration market.Chainlink has lauded the SEC’s updated guidelines as a significant advancement enabling the integration of public blockchains within compliant financial recordkeeping and operational processes. The project actively participated in shaping this guidance through consultations and demonstrations of compliant smart contract workflows. Chainlink’s middleware solutions are poised to connect traditional finance with tokenized institutional finance, positioning it as a key intermediary in the emerging ecosystem.While the guidance sets precise regulatory boundaries, it remains incremental, with broader updates anticipated. SEC Commissioner Hester Peirce emphasized the non-controversial nature of the new FAQs, which mostly reiterate existing rules while offering clarity for crypto-related financial services.This development signals a regulatory endorsement of public blockchain technology within securities infrastructure, marking a shift toward the future of tokenized finance where compliant, automated, and cost-effective on-chain operations become standard practice.