A coalition led by the Solana Policy Institute, Decentralized Exchange Orca and registered investment advisor Superstate has submitted a request to the US Securities and Exchange Commission (SEC) to launch a pilot program for the issue and secondary trade on public Blockchains effects.
April 30 submit Imagine that the SEC subsidy is exemption to facilitate the project, named ‘Project Open’, under existing regulatory frameworks.
The initiative would enable our entities to issue effects on public blockchain networks and allow investors to trade effects through conforming interfaces. Orca would serve as a location for secondary transactions.
Solana Policy Institute CEO Miller Whitehouse-Levine said:
“Project Open is an embodiment of American progress in financial innovation. Our goal is to work constructively with the SEC and industrial partners to create internet capital markets and to make all capital markets more efficient, more accessible and transparent.”
Superstate would issue the effects, while the Solana Policy Institute would coordinate technical and regulatory involvement.
The submission is structured as a limited pilot under SEC rules 5B-3 and 15C3-3, asking to design and exploit regulatory exemption a market structure that is compatible with existing rules for investor protection and at the same time use blockchain settlements.
The sponsors want to demonstrate that publicly accessible blockchains can support transparent and conforming markets for traditional effects.
Project Open
The proposal would enable the issue of tokens to represent effects on a public blockchain, such as Solana (SOL), which makes programmable compliance functions and settlement mechanisms possible.
The effects would be available for eligible investors via interfaces that are governed by knowledge of the knowledge (KYC) and anti-money laundering practices (AML).
ORCA would offer the liquidity location and price discovery, while Superstate, already operating under a sec -registered investment advisor (RIA) structure, would serve as the issuer. The pilot proposes a measured scope, aimed at limited activation types and covered transaction volumes.
It aims to evaluate the feasibility of public blockchain infrastructure as an alternative to existing clearing and settlement systems such as DTCC, with a focus on regulating auditability, transparency and operational resilience.
The coalition strives for exemption or exemption assignments of the SEC from the departments of the SEC on trade and markets and investment management.
The petition also outlines legal arguments that claim that the pilot would remain within the boundaries of the Investment Company Act and Exchange Act, given his scary structure and supervisory functions.
Regulatory involvement in the midst of market evolution
Submitting arrives at a time when the SEC increases its involvement in tokenization and blockchain-based infrastructure.
Project Open explicitly calls for the use of public, decentralized blockchain infrastructure. The sponsors claim that public chains offer verifiable audit paths, offer open access to market data and lower entry thresholds for emennents and intermediaries, in accordance with the long -term goals of the SEC for transparency and investor protection.
The pilot would also provide empirical data about investor behavior, system performance and compliance monitoring in a blockchain-native environment, which would inform future policy-making.
The submission includes technical documentation with details about the cryptographic settlement model, token standards and access controls to support the visibility of supervision and maintaining compliance.
The SEC has not issued a formal answer and there is no current timeline for a decision.
If approved, the Open Pilot Project would represent one of the first second-good-toxic efforts to operationalize securities trade directly on a public blockchain with a registered asset manager and decentralized exchange as counterparties.