The SEC’s Crypto Task Force is actively evaluating how public blockchains can be used for issuing and trading tokenized securities. In three recent meetings with Nasdaq, Plume Network, and Etherealize, a common proposal emerged: the creation of a regulatory sandbox to test blockchain-based financial innovations.
Nasdaq recommended keeping tokenized assets under current rules while introducing a new digital trading platform and a joint safe harbor with the CFTC for assets with unclear classifications. Plume Network advocated using permissionless blockchains and proposed a sandbox considering DeFi principles and existing securities laws.
Etherealize and MetaLeX focused on replacing outdated transfer agent regulations with blockchain-based systems and smart contracts for corporate actions.
All participants emphasized the need for clearer rules, gradual implementation, and tech-specific updates, without compromising investor protection. The SEC is now reviewing these proposals, which could influence future policies around blockchain finance.
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