The Blockchain Association has created a Security Token Working Group to collaborate with industry participants, policymakers and regulators. The group will be co-chaired by Georgia Quinn, General Counsel of CoinList, and Alex Levine, Chief Legal Officer of TokenSoft, two primary issuance platforms that are regulatory compliant. The objective is to help create “clear regulations” for the emerging security token sector of Fintech.
Security tokens are digital assets that are handled via blockchain thus removing all or most of the analog processes. Today, many security transactions depend on paper. Many financial industry followers expect the digitization of securities it is more a question of time.
The Blockchain Association claims that current securities law “prohibits U.S. financial markets from realizing these benefits because the regulations were designed to manage the issuance, custody, and trading of paper-based securities.
Digital securities can, in fact, make compliance simpler while removing intrinsic friction to the issuance, trading and management process of many different asset classes. Some industry followers believe digital securities will launch a new era of esoteric securities while opening up markets further to a wider audience. What is missing, is better-defined rules.
The Blockchain Association’s Security Token Working Group says it “looks forward to working with members of Congress, the SEC, FINRA, other U.S. regulators, and the broader blockchain industry to promote the adoption and sound regulation of security tokens in the United States.”