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SEC Opens Talks with Ethereum Groups on Tokenized Securities Rules

Published by
Zafar Naik and Qadir AK

For the first time in years, the SEC is listening to crypto rather than just cracking down.

In a private meeting last week, the SEC’s Crypto Task Force met with several Ethereum-aligned organizations to explore how blockchain standards could support compliant tokenized securities in the US. 

The invite list included the ERC-3643 Association, Chainlink Labs, the Enterprise Ethereum Alliance, and the Linux Foundation’s Decentralized Trust initiative.

At the center of the discussion were two key tools: ERC-3643, a token standard designed for compliant capital markets on Ethereum, and Chainlink’s Automated Compliance Engine (ACE), a smart contract framework built for regulatory needs.

SEC Warms Up to Blockchain Standards

According to Dennis O’Connell, president of the ERC-3643 Association, the SEC’s attitude was strikingly different this time.

“The task force was very welcoming, engaged and motivated to bring the US into leadership,” he told Cointelegraph.

O’Connell said the SEC had previously overlooked how open standards could help bridge crypto and compliance – something that’s long been obvious to builders in the space.

“We laid out our case on why, like other industries, standards are fundamental to growing crypto in the US and enabling securities to come onchain.”

What Makes ERC-3643 Different?

Unlike standard Ethereum tokens, ERC-3643 is tailored for the regulated world. It includes built-in controls for identity, access, and compliance, giving it the kind of structure traditional markets require.

That’s backed by Chainlink’s ACE, which automates compliance checks for tokenized assets, including securities and real-world assets (RWAs). Together, they offer a framework that regulators can actually work with without slowing down innovation.

Not a Green Light Yet

The SEC didn’t commit to anything concrete, but the meeting came after months of quiet effort between blockchain leaders and regulators. And it left participants optimistic.

O’Connell called it a “major step for the industry.”

SEC Chair Says the Future Is Tokenized

SEC Chair Paul Atkins recently doubled down. He revealed the agency is exploring an “innovation exemption” to allow new models for trading tokenized securities.

His stance was clear: “If it can be tokenized, it will be tokenized.”

This meeting may not change regulations overnight but it reflects a shift that’s long overdue. We’ll keep you updated on what’s next. 

FAQs

What was the purpose of the SEC’s meeting with crypto groups?

The meeting explored how blockchain standards like ERC-3643 and compliance frameworks like Chainlink’s ACE could support compliant tokenized securities in the US, indicating a shift in the SEC’s approach.

What is SEC Chair Paul Atkins’ view on tokenization?

SEC Chair Paul Atkins is actively exploring an “innovation exemption” to foster tokenization, stating clearly, “If it can be tokenized, it will be tokenized,” signaling a move towards embracing blockchain in finance.

Zafar Naik and Qadir AK

Zafar is a seasoned crypto and blockchain news writer with four years of experience. Known for accuracy, in-depth analysis, and a clear, engaging style, Zafar actively participates in blockchain communities. Beyond writing, Zafar enjoys trading and exploring the latest trends in the crypto market.

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