- The Securities and Exchange Commission ponders exemptions, allowing crypto exchanges to test tokenized securities before enforcing updated regulations.
- Acting SEC Chair Mark Uyeda urges participants to propose areas for regulatory relief, hoping to foster blockchain-based finance.
The Securities and Exchange Commission is considering a plan that might allow crypto exchanges to experiment with blockchain-based stocks and bonds before formal rules exist. Acting SEC Chair Mark Uyeda, in a video statement, invited industry participants to suggest where “exemptive relief” could apply.
Commissioner Hester Peirce later spoke in favor of this approach, arguing that it offers a way for these platforms to see what works in areas such as issuance, trading, and settlement.
“Participating firms could see what works and what doesn’t, technically and commercially,” she said. “Such trials could inform the Commission’s rulemaking efforts.”
During a roundtable on crypto assets, Peirce mentioned that a limited, conditional framework would encourage exchanges to evaluate the viability of tokenized securities with less regulatory burden. This pilot idea, or “sandbox,” would let them gather data for the SEC’s consideration, possibly shaping future guidelines. Supporters believe it may offer practical insights into how crypto ledgers can handle securities transactions.
Opponents, however, warn about potential fallout. Some officials worry that crypto exchanges already combine multiple activities under one roof, making them riskier than traditional stock markets.
Commissioner Caroline Crenshaw, the agency’s remaining Democratic member, referred to these concerns during her recent comments. She highlighted the possibility of market disruptions, cautioning that any oversight gaps might not only harm individual participants but also disturb broader financial systems.
In the past, Hester Peirce proposed a shared “crypto securities sandbox” between U.S. and UK regulators. That plan did not advance, given Chair Gary Gensler’s reservations about applying trial-based models to crypto assets.
Nevertheless, the latest move by the SEC suggests that at least some commissioners remain open to an experimental phase in the crypto sector, as they weigh how best to handle tokenized versions of standard financial products.
