tl;dr
The SEC Crypto Task Force held meetings with Nasdaq, Plume Network, and Etherealize to explore the use of public blockchain technology for issuing and trading tokenized securities. Nasdaq advocated for maintaining existing registration rules for tokenized shares, bonds, and ETFs, proposed a new “ATS...
The SEC Crypto Task Force recently engaged in discussions with key players Nasdaq, Plume Network, and Etherealize to explore the potential of using public blockchains for securities tokenization and innovative regulatory frameworks.
Nasdaq emphasized maintaining existing registration rules for tokenized shares, bonds, and ETFs while proposing the creation of an “ATS-Digital” trading venue tailored for digital asset listings. They also called for a regulatory sandbox to address classification uncertainties, aiming to enable self-certification and light-touch disclosures without weakening protections in the national market system.
Plume Network advocated for a regulatory sandbox specifically designed to accommodate decentralized finance (DeFi) mechanisms within the framework of securities laws. Their proposal includes safe harbor provisions and adaptable tools to regulate primary offerings and on-chain secondary markets, highlighting the effectiveness of permissionless blockchains for real-world asset tokenization.
Etherealize, together with MetaLeX, pushed for a major update to transfer agent regulations, advocating for recognition of secure blockchains as official share registers. They proposed exemptions for issuers using decentralized tokenization and urged pilots for blockchain-based corporate actions such as dividend payments and shareholder voting, aiming to enhance operational efficiency and reduce reliance on parallel off-chain ledgers.
Across all meetings, a clear consensus emerged around four key themes: the need for clear taxonomy, modular and technology-specific regulations, implementation through phased pilots, and the unwavering importance of investor protection. The SEC Crypto Task Force acknowledged these inputs and is actively considering future rule proposals that may introduce regulatory sandboxes, specialized trading venues, and revised transfer agent obligations to support innovative blockchain applications in securities markets.