EddieJayonCrypto
8 May 25
The US Securities and Exchange Commission (SEC) is considering a conditional exemption to allow firms to issue and trade securities using distributed ledger technology (DLT) without registering under traditional SEC frameworks. SEC Commissioner Hester Peirce announced that this exemption aims to red...
The US Securities and Exchange Commission (SEC) is considering a conditional exemption to streamline the issuance and trading of tokenized securities using distributed ledger technology (DLT). This exemption aims to reduce regulatory burdens while maintaining strong investor protections.
Commissioner Hester Peirce announced that the proposed exemption would allow firms to issue and trade securities on blockchain platforms without registering under traditional SEC frameworks, such as broker-dealer, clearing agency, or exchange registrations. Current regulations create obstacles for companies employing automated market-making models, limiting participation in tokenized securities markets.
The exemption would impose strict guidelines on transparency, financial responsibility, and investor protection. Firms benefiting from this relief must disclose platform operations, custody arrangements, and blockchain-specific risks. They are required to maintain adequate capital and implement controls to prevent fraud and market manipulation, while remaining under SEC supervision.
Peirce emphasized the SEC’s effort to balance fostering innovation with safeguarding investors by developing a commercially viable regulatory approach tailored to DLT. The agency is actively soliciting feedback from market participants and interested parties to refine these proposed measures.