Yesterday Commissioner Hester Peirce said that the Securities and Exchange Commission (SEC) is inspired by some of the sandbox environments offered in other jurisdictions and is considering relaxing some registration requirements and rules to support tokenization and DLT based securities.
Historically the SEC has provided no action letters to individual entities. Commissioner Peirce said that the SEC is considering a “potential exemptive order that would allow firms to use DLT to issue, trade, and settle securities.”
While regulators often talk about being technology agnostic, most legislation is based on technologies available when they were drafted. Compliance with existing regulations could cancel out some potential efficiencies enabled by new technologies such as DLT.
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