SEC partners with Ethereum to find a new way for securities in America

The U.S. Securities and Exchange Commission (SEC) just had a meeting with industry stakeholders to discuss a token standard to support the issuance and transfer of tokenized securities in accordance with regulations.

The Crypto Task Force ( of the SEC met with organizations related to Ethereum last Thursday, including the ERC-3643 Association, Chainlink Labs, the Enterprise Ethereum Alliance, and the Linux Foundation Decentralized Trust.

In the meeting, both the SEC and blockchain supporters explored how open standards like ERC-3643 and compliance frameworks such as Chainlink's Automated Compliance Engine )ACE( can help bridge on-chain technology with traditional legal requirements.

ERC-3643 is a token standard designed to serve as the foundation for a regulatory-compliant capital market on the Ethereum network. This standard is backed by the ERC-3643 Association and has received support from companies like Chainlink. Meanwhile, Chainlink's ACE is a framework based on smart contracts for tokenized assets such as securities or real-world assets )RWA(.

SEC shows openness to standards in the crypto industry

Mr. Dennis O’Connell, Chairman of the ERC-3643 Association, shared that the SEC has shown a marked change in tone and approach in this meeting compared to previous years.

"The dedicated forces are very friendly and want to make the U.S. the leading country."

He stated that the SEC has shown openness to the industry-proposed standards. According to him, the dedicated force had never considered the importance of open standards in the blockchain field.

"We have presented the reasons why, as well as other industries including traditional finance, standards are a key factor for the crypto industry to develop in the U.S. and allow securities to operate on the blockchain."

In the meeting, representatives from the crypto industry presented proposals on all core elements of the regulatory framework for tokenized securities, including issues related to identity, compliance, registration, and control.

O’Connell expressed that the specialized agency has not taken a definitive stance on tokenized securities. Instead, they are "willing to explore how new blockchain technologies can address concerns related to identity, control, and compliance."

He stated that the meeting is the result of months of work and marks a "major step forward for the entire industry." The ERC-3643 Association and its partners intend to continue working with the SEC's Crypto Task Force and other government agencies in the U.S., with the hope that the U.S. will catch up with global regulatory trends and become a leading country in the application of blockchain in the capital market.

SEC Chairman Atkins Advocates for Tokenization Process

After the meeting, the SEC Chairman made positive statements, expressing support for the process of asset tokenization in the U.S. On Friday, Bloomberg reported that SEC Chairman Paul Atkins is considering creating an exemption mechanism within the legal framework to promote tokenization.

Mr. Atkins stated that the SEC is considering several changes aimed at encouraging the tokenization process, including the addition of an exception allowing the application of new trading methods to support the development of tokenized securities.

"If it can be tokenized, it will definitely be tokenized," Mr. Atkins said, acknowledging that the conversion of assets to blockchain is an inevitable trend.

Itadori