The U.S. Securities and Exchange Commission (SEC) is looking at new rules that could make it easier for companies to issue digital tokens tied to real-world assets, according to a speech by SEC Commissioner Hester Peirce published on May 8.
The changes would apply to firms using blockchain to issue, trade, and settle securities, and may include an exemptive order that reduces some of the usual registration rules.
Commissioner Peirce said that such firms might not need to register as a broker-dealers, clearing agencies, or even as an exchange. “The regulator is considering a potential exemptive order,” Peirce said. This would help companies avoid rules that were created before blockchain technology existed.
This could mean fewer legal hurdles for decentralized exchanges, or DEXs, which have been previously targeted by the SEC for not registering under current laws.
In the same speech, Peirce pointed out that “firms should not have to comply with inapt regulations, which, in many cases, were developed well before the technologies being tested existed.”
She explained that certain features of blockchain may make some of those rules unnecessary. Still, any company receiving such an exemption would need to follow rules that prevent fraud and market manipulation. They would also have to meet requirements for transparency and keeping proper records.
This added to the changes in the way SEC approaches crypto. Since April 21, when Paul Atkins was appointed under former President Donald Trump, became the new SEC Chair, the agency has taken a narrower view of what falls under its watch.
Just in February, it said that meme-coins are not considered securities if they’re clearly labeled as just speculative assets. In April, the agency stated that stablecoins used only for payments also don’t count as securities.
This is a shift from the past administration. Under former Chairman Gary Gensler, the SEC launched more than 100 lawsuits against crypto companies. Now, the tone is different.
Also Read: SEC Unveils Agenda for Tokenization Roundtable May 12
