The staff of the US Securities and Exchange Commission and Crypto Exchange Kraken have recently discussed various issues with regard to the tokenization of traditional assets and the regulatory framework for these assets.
Kraken meets Crypto Task Force
On Monday, the employees of Kraken and the US Sec crypto Task Force met discuss The tokenization of traditional assets and a potentially tokenized trading system in the US. The committee staff had a meeting with representatives of Payward, Inc., Kraken Securities LLC and Wilmer Cutler Pickering Hale and Dorr LLP law.
According to the Memorandum of the SEC, the agenda included approaches to tackle problems related to the regulation of crypto assets and the legal and regulatory framework for operating a tokenized trading system.
In particular, the topics also include an overview of the core components of the architecture of the proposed Tokenized trade system, with potentially relevant provisions under the federal securities laws, which investigate how the SEC can offer regulatory clarity and facilitate innovation and discuss the benefits of tokenization.
The reunion follows the interest of the crypto -fair in the launch of tokenized shares of popular shares outside the US. In May, Kraken announced his plan to allow non-American customers to trade a tokenized version of popular shares, with more than 50 shares and exhibition-related funds (ETFs), such as Apple, Tesla and Nvidia.
The tokenized shares of Kraken enable users in Europe, Latin -America, Africa and Asia to invest in US shares, even when the US stock market is closed, with lower trading costs and faster settlement.
Similarly, Coinbase is looking for the approval of the SEC to offer tokenized shares to its customers. In June, Coinbase’s Chief Legal Officer (CLO), Paul Grewal, told Reuters that the emerging sector is a “huge priority” for the crypto exchange.
Nevertheless, Coinbase should receive a “noting letter” or exempt exemption from the Commission, since companies that usually offer trade in securities are registered as broker dealers under the securities ruler.
“With a no-action letter, an issuer of a tokenized equity or a platform that wants to offer secondary trade in those shares, may have some confidence, some comfort, that the sec has taken over his opinion why this product is in accordance with”, “it is that trust that has held trust,” of the instructions of the Instution of the Instution of the Instution of the Instamps of the Instution of the Instution of the Instamps ” and have noticed blockchain.
Take care of the industry for tokenized shares
Kraken’s urge to the clarity of the regulations with regard to Tokenized shares also follows recent concerns from the world’s greatest fairs. On August 25, Reuters reported that the World Federation of Exchanges (WFE) called on securities regulators to combat tokenized shares, with the argument that the blockchain -based tokens “create new risks for investors and harm the market for the market.”
The letter was said to be sent to the Crypto Task Force of the SEC, the European Securities and Markets Authority (ESMA) and Global Securities Watchdog iOSCO’s Fintech Task Force on August 22. The coalition expressed his concern that these tokens ‘mimic’ shares without providing the same rights or commercial protections.
Earlier this year, the World Economic Forum outlined some of the biggest challenges for the acceptance of Tokenized shares, including the lack of sufficient liquidity of the secondary market and a clear global standard.
“We are alerted about the abundance of real estate agents and crypto-trading platforms that offer or are planning to offer so-called Tokenized US shares,” the WFE wrote in the recent letter, suggesting that expenses of sharing reputation damage can increase if the tokens fail.
The WFE urged supervisors to apply securities rules to Tokenized assets, to clarify legal frameworks for ownership and detention and to prevent them from being put on the market as equivalent to shares.
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