Securities and Exchange Commissioner Commissioner Hester Pierce has recently put forth a proposal for a collaborative program between blockchain companies in the U.S. and the U.K. The program aims to create a safe space for these firms to experiment with tokenized securities without facing any repercussions from state regulators.
Pierce spoke about the advantages of a cross-border collaboration for exploring tokenized assets during a panel discussion at Consensus 2024. She stated, “One of the issues we’ve encountered is that people have tried to seek relief from the SEC, but nothing really happens. This program would force the SEC to take action.”
In her letter, the SEC Commissioner outlined several requirements for the joint program, including the establishment of “eligible activities” for experimentation in the digital securities sandbox. These activities would be determined through input from the public and industry experts. Additionally, there would be limits and regulations on the experimental activities, which would be monitored by regulatory officials from both countries.
The letter also emphasized the benefits of securities tokenization, such as reduced transaction costs, increased settlement finality, and improved transparency for investors and market participants.
Overall, this collaboration between U.S. and U.K. blockchain firms in a sandbox program could pave the way for innovation in the tokenized securities space, while ensuring regulatory oversight and protection for all parties involved.