The SEC Crypto Task Force has recently held discussions with Nasdaq and DeFi startups regarding securities tokenization. Here are the details:
Meetings and Proposals
Meeting with Nasdaq: On May 21, Nasdaq executives asked the task force to keep tokenized shares, bonds, and ETFs subject to existing registration rules. They also requested authorization for a new “ATS – Digital” venue to list digital asset investment contracts and commodity – style tokens. Additionally, they proposed a joint safe harbor with the CFTC for assets of uncertain status, allowing issuers to self – certify classifications with light – touch disclosure standards. Nasdaq emphasized that tokenization should not weaken national market system protections and that atomic settlement must balance liquidity and operational risk.
Meeting with Plume Network: On May 22, the Arbitrum – based Plume Network told the SEC that permissionless blockchains are suitable for real – world asset tokenization and proposed a regulatory sandbox covering the 1933 Securities and 1934 Exchange Acts. They asked for safe harbor relief considering decentralized finance mechanics and “credible neutrality,” as well as tools to calibrate rules for primary offerings and on – chain secondary trading. They also sought guidance on tokenizing US and non – US equities under relevant regulations.
Meeting with Ethe Realize: Ethe Realize and Metalex focused on back – office infrastructure, saying that legacy transfer agent regulations force issuers to keep parallel off – chain ledgers, negating blockchain efficiencies. They proposed that the SEC recognize secure blockchains as authoritative share registers, exempt issuers using decentralized tokenization protocols from transfer agent registration, and create a fast lane for agents specializing in tokenized securities. They also urged a pilot to test smart contract equivalents for corporate actions like dividend distribution and shareholder voting.
Converging Themes
Across the meetings, industry participants called for clear taxonomy, modular rulebooks, and phased pilots. They also asked for technology – specific tweaks but did not challenge the SEC’s core investor – protection mandate. The task force staff took the materials under advisement, suggesting that future rule proposals may consider sandbox models, dedicated trading venues, and updated transfer agent obligations.
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