SEC Commissioner Hester Peirce announced the exploration of registration exemptions for companies using distributed ledger technology (DLT), which may change the rules for securities.
SEC Initiative on DLT in Securities
In an announcement on May 8, 2025, SEC Commissioner Hester Peirce revealed the exploration of registration exemptions for securities using DLT. This will allow companies to use this technology in issuing, trading, and settling securities. Peirce noted, 'The SEC...is considering a potential registration exemption for companies using Distributed Ledger Technology to issue, trade, and settle securities.' The proposal includes restrictions for investor protection and regulatory compliance.
Market Reactions to SEC Proposals
The community and market show diverse reactions to the SEC's initiatives. Some industry leaders express optimism while others emphasize the need for ongoing vigilance in managing systemic risks associated with the technology.
Historical Context and Expert Opinions
Interestingly, the SEC's steps are similar to the concept of 'regulatory sandboxes' adopted in countries like Singapore, where new technologies are tested in a controlled environment. Currently, Bitcoin (BTC) is trading at $102,132.88 with a market cap of $2.02 trillion. Experts suggest that blockchain integration into financial markets could enhance transparency and efficiencies in decentralized systems.
The SEC's initiatives to support blockchain in securities represent a significant step towards regulating modern financial technologies, emphasizing the importance of balancing innovation with investor protection.
