On Thursday, the SEC’s Crypto Task Force met with the Securities Industry and Financial Markets Association (SIFMA) to discuss key issues around regulating digital assets. They talked about things like digital commodities, tokenized securities, and how existing securities laws apply to new technologies in the crypto space.
According to the U.S. Securities and Exchange Commission’s (SEC) meeting memo, SIFMA stressed the urgent need to update disclosure rules to cover new types of digital securities.
SIFMA recommended expanding the existing regulatory framework rather than relying on a patchwork of exemptions or no-action letters, which it believes risk undermining transparency and public confidence.
The group emphasized the need for a regulatory system that preserves core investor protections while evolving with technology. It also stressed the importance of keeping key functions: such as trading, custody, and broker-dealer services, separate to ensure market integrity.
The panel also proposed only limiting direct retail access to digital securities and commodities due to investor protection issues.
In the pre-meeting agenda, SIFMA asked the SEC to adopt a transparent and open regulatory process that requires participation in the community, other than the adoption of new trading or issuance models.
Being a key issue in a basic legal framework, the group also insisted on the need to have terminology such as that of digital securities and digital commodities decently defined.
Also, SIFMA proposed an encompassing legislative plan that would bend technological realities into existing legislation as well as ensure that rules are cross-border. The panel highlighted the importance of trans factor provisions that consider the hybrid nature of modern financial progress.
Earlier this week, the group publicly opposed allowing digital asset firms to offer tokenized equities under exemptive relief or no-action letters, arguing that any such changes should undergo a full public review process.
SIFMA therefore urges the SEC to reject the firms’ requests for no-action or exemptive relief, the group stated, and instead provide for a robust public process that allows for meaningful public feedback.
The meeting signals growing pressure from traditional financial institutions for the SEC to modernize its regulatory playbook while maintaining transparency, fairness, and investor protection in the age of digital finance.
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