Securities and Exchange Commission (SEC) Acting Chairman Mark Uyeda has suggested that a conditional regulatory sandbox for a conditional regulatory sandbox for blockchain-based securities trade.
Uyeda made the comments During the SEC Crypto Task Force’s second round table on April 11, which focused on crypto -trading platforms. He For a while, a limited, conditionally exempt auxiliary framework suggested to support continuous innovation while maintaining regulations.
Such a framework would enable registrants and non-registers to explore blockchain-based trade solutions without full approval of the regulations, depending on compliance with defined conditions.
He encouraged market participants to give input about how and where such an exemption could be implemented most effectively.
Federal framework to improve crypto -trade
Uyeda acknowledged that the first digital asset trade platforms were developed outside the federal jurisdiction, often under regulation at state level via licenses for money channels.
This led to a patchwork of legal approaches, where some platforms need up to 50 different licenses to operate nationally.
He suggested that an “adjustment of the federal regulatory framework” could streamline compliance with entities that can offer trade in both tokenized effects and digital assets non-security.
However, existing federal securities laws are barriers for integrating blockchain-based systems in traditional securities markets.
Uyeda mentioned restrictions among the current rules for broker’s dealers and national securities fairs, in particular with regard to list requirements and order protection instructions.
Most of the tokenized effects are not registered, so they are not eligible for a list at national fairs. Further complications arise from the structural differences between traditional and crypto -trading platforms.
While traditional exchanges separate custody, version and clearing, most crypto platforms are vertically integrated entities that combine these functions.
Uyeda noted that federal securities legislation did not expect that technologies such as blockchain or smart contracts that are usually reserved for transfer agents or clearing houses do not expect.
Despite these challenges, Uyeda recognized the operational benefits of distributed ledger technology. He emphasized the potential of blockchain for real -time colland management, greater capital efficiency and continuous trade through decentralized protocols.
He added that these functions can offer the implementation and cleaning of benefits that are not present in legacy systems.