Sherwood “Woodie” Neiss, GUARDD CEO and securities crowdfunding OG, has sent a letter to the Securities and Exchange Commission outlining their ability to support secondary trading for exempt securities.
The letter was sent in response to a statement by SEC Chairman Paul Atkins asking for input as to how the Commission can enable inchain innovation while maintaining investor protections.
GUARDD is a disclosure platform that targets exempt securities issued under Reg D, Reg A, and Reg CF. GUARDD was built to support compliant secondary markets for exempt securities, including tokenized assets.
Secondary liquidity for exempt securities is a topic that insiders have long discussed to facilitate exits for purchasers. While platforms have emerged to enable trading for non-public firms, limitations undermine the process.
The GUARDD letter states that Atkins shared his concern at the recent IAC meeting that “tokenized shares risk becoming nothing more than conversation pieces if their owners cannot trade them competitively in liquid on-chain environments.”
“This concern applies equally to the broader universe of exempt securities issued under Regulation A+, Regulation Crowdfunding, and Regulation D.”
GUARDD proposes that regulators create an environment that recognizes “Qualified Disclosure Publishers” that provide disclosure, clarify trading venues, and support uniformity across all states, thereby preempting cumbersome and costly state laws.
GUARDD states that their proposal aligns with SEC objectives by enabling scaled disclosure, bolstering investor protection, and facilitating tokenization innovation.
The letter from GUARDD is available here.
