SEC Commissioner Hester Peirce has proposed a US–UK cross-border sandbox for crypto assets which could facilitate innovation and regulatory coordination.
SEC's Cross-Border Proposal
In her speech on July 16, 2025, SEC Commissioner Hester M. Peirce outlined the concept of a cross-border sandbox for cryptocurrency and tokenized assets between the US and UK. This initiative aims to foster coordinated oversight and stimulate innovation across both markets.
Potential Implications for Digital Securities
Peirce’s proposal could impact how digital securities operate in both jurisdictions. It may streamline market operations by providing regulatory clarity and facilitating international competition. The exact impacts of existing regulations are yet to be established as details further develop.
Historical Context and Benefits
Historical examples, such as the UK's Digital Securities Sandbox, suggest possible regulatory benefits from collaborative tech-driven environments. Peirce mentioned that shared data could benefit both regulators and the public, allowing access to a broader range of products and services.
CITE_W_A: "I suggested a cross-border sandbox... It could be even more effective: innovators could benefit from simultaneously serving UK and US markets..." - Hester M. Peirce.
The proposal establishes a foundation for potential regulatory changes in crypto assets and digital securities aimed at achieving a more coordinated and equitable application of standards on a global scale.
