Hester Pearce, a leading member of the Securities and Exchange Commission (SEC), has indicated that she supports a proposed cross-border “digital securities sandbox” between the US and the UK.
in Wednesday LetterSEC Commissioner Perce thanked the Bank of England and the UK's Financial Conduct Authority (FCA). Suggestion A local “Digital Securities Sandbox” (DSS), which will allow participating companies to experiment with blockchain technology in the “delivery, trading and settlement of securities”.
The sandbox was set up as a testing ground to see if using distributed ledger technology could improve the efficiency of traditional banking, and the commissioner said it should be available to companies on both sides of the Atlantic.
“Contrary to the proposal, I propose that DSS be open to US-based organizations,” Pearce wrote. She suggested a “micro-innovation” sandbox where US companies could test digital business activity under their choice of US or UK laws—still subject to general anti-fraud provisions and predetermined financial and customer ceilings.
The SEC and the UK can share information about activity in both sandboxes and use their findings to develop better regulations for their local crypto sectors.Hester said.Meanwhile, she wrote, the private market would benefit from having a place to innovate in “real-world” environments without fear of regulatory theft, creating a way for “small and disruptive firms” to enter the regulated market and compete with large incumbents.
“While I tend to be more offshore than sandbox-type regulators, sandboxes have proven to be effective in facilitating innovation in highly regulated areas,” Pearce wrote. A cross-border sandbox, she noted, would allow experimentation with “asset fragmentation” and “interoperability between different blockchains and tokens,” among other things.
While the idea is interesting, it's unlikely to go anywhere given the SEC's current leadership, said University of Kentucky Pow professor Brian L. Frye. Decrypt.
“I think it's a good idea, especially by allowing the SEC to learn a lot about regulating the crypto market,” Frye said. “However, I highly doubt that Gensler will support it and I think it's unlikely.
“Commissioner Pierce's cross-border sandbox proposal has no chance in Chairman Gensler's SEC,” opined Todd Phillips, a law professor at Georgia State University. “The SEC should have approved the sandbox, and many see regulatory boxes as a backdoor. To tear down consumer protection laws, I don't expect a Democratic SEC majority to bite.”
Regulatory Sandbox The sandbox is a common tool used among jurisdictions around the world to “test new technologies by providing a flexible, evidence-based regulatory environment.” He explains. US fintech companies are involved More than a dozen programs At the state level, according to the American Banking Association.
Until recently, the Securities and Exchange Commission (SEC)—under Chairman Gary Gensler—has led dozens of enforcement actions against crypto companies for violating securities laws, and has refused industry calls for customized regulation.
Under regulatory pressure, many organizations have chosen to flee the United States for fear of non-compliance, and others fight In court against the SEC.
At the beginning of this month, after the House of Representatives, the political wind shifted in the direction of crypto He passed a law. To provide legal transparency around crypto assets with strong bilateral support. Soon, the SEC quickly decided Approval of Ether Spot ETFs For a public business, the expectation of rejection is high.
Edited by Ryan Ozawa.
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