SEC Meets Ethereum Industry Leaders to Discuss Tokenized Securities Standards

The US SEC has held a significant meeting with Ethereum-aligned industry groups to discuss establishing a token standard that would support the compliant issuance and transfer of tokenized securities. The meeting , held on Thursday, included the SEC’s Crypto Task Force and representatives from the ERC-3643 Association, Chainlink Labs, the Enterprise Ethereum Alliance, and the Linux Foundation’s Decentralized Trust initiative. The discussions focused on how open blockchain standards such as ERC-3643 , along with compliance frameworks like Chainlink’s Automated Compliance Engine (ACE), could help align onchain technology with traditional regulatory structures. ERC-3643, backed by its association and supported by companies including Chainlink, aims to become the foundation for compliant capital markets on the Ethereum network. Meanwhile, Chainlink ACE is a smart contract-based compliance tool designed for managing tokenized securities and real-world assets within regulatory frameworks. Openness to Industry-Led Standards Dennis O’Connell, president of the ERC-3643 Association, described the SEC’s approach during the meeting as notably open and constructive compared to previous years. “The task force was very welcoming, engaged and motivated to bring the US into leadership,” O’Connell told Cointelegraph, highlighting a shift in the SEC’s tone toward blockchain technology. O’Connell noted that the SEC had not fully considered the significance of open standards in blockchain prior to the meeting. He explained that the industry representatives emphasized why standards, as seen in traditional finance, are essential for scaling crypto markets in the US and enabling securities to move onchain. Industry participants presented proposals covering all critical components for a regulatory framework for tokenized securities, including identity management, compliance, registry, and control mechanisms. While the SEC did not take a definitive position on the issue during the meeting, O’Connell stated that the task force appeared open to exploring how blockchain technology can address regulatory concerns related to identity, control, and compliance. He described the meeting as the culmination of months of preparation and a “major step for the industry,” adding that the ERC-3643 Association plans to continue engaging with the SEC and other US agencies to advance blockchain adoption in capital markets. SEC Chair Signals Support for Tokenization Push Following the meeting, SEC Chair Paul Atkins signaled potential regulatory support for tokenization in the US. According to Bloomberg, Atkins is considering introducing an “innovation exemption” within the SEC framework to encourage the development of tokenized securities and new trading models. “If it can be tokenized, it will be tokenized,” Atkins said, acknowledging the inevitability of asset movement onto blockchain platforms as the financial system evolves. This marks a notable shift within the SEC, aligning with the broader global trend of exploring blockchain adoption to modernize capital markets while maintaining regulatory compliance. The post SEC Meets Ethereum Industry Leaders to Discuss Tokenized Securities Standards appeared first on TheCoinrise.com .

Source: The Coin Rise