The U.S. Securities and Exchange Commission (SEC) is exploring new regulations that could simplify the process for companies looking to issue digital tokens linked to real-world assets, according to a speech by SEC Commissioner Hester Peirce on May 8.
The proposed changes would affect companies using blockchain technology to issue, trade, and settle securities. This could include an exemptive order that would ease some of the traditional registration requirements, allowing firms to bypass the need to register as broker-dealers, clearing agencies, or even exchanges.
Commissioner Peirce highlighted that this adjustment would help businesses avoid outdated regulations that were established before the advent of blockchain technology. She noted that decentralized exchanges (DEXs), which have previously faced SEC scrutiny for failing to register under current laws, could benefit from this shift.
“Firms should not be bound by regulations that were created before the technologies in question even existed,” Peirce stated. While some rules may be outdated, she emphasized that any company receiving an exemption would still need to adhere to regulations designed to prevent fraud, market manipulation, and ensure transparency.
This development signals a shift in the SEC’s approach to the crypto industry. Since Paul Atkins was appointed as SEC Chair in April 2021, the agency has taken a more focused stance on what constitutes a security. For instance, in February, the SEC declared that meme coins, when clearly marketed as speculative assets, do not qualify as securities. In April, it also clarified that stablecoins used solely for payments are not securities.
This marks a contrast to the SEC’s previous stance under former Chair Gary Gensler, during which the agency filed over 100 lawsuits against crypto companies. Under the current leadership, however, the tone has shifted to a more accommodating approach.
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