SEC Commissioner: SEC is considering registration exemption policy to allow companies to issue trading securities using DLT

According to Foresight News, Commissioner Hester Peirce of the US Securities and Exchange Commission (SEC) has announced that it is considering a potential registration exemption policy that would allow companies to use distributed ledger technology (DLT) to issue, trade, and settle securities. The draft is the "Balancing Creativity and Collaboration Act," which mentions that the US Securities and Exchange Commission's (SEC) Cryptocurrency Working Group is considering a potential exemption order based on the February draft, allowing companies to use distributed ledger technology (DLT) to issue, trade, and settle securities. This potential exemption will exempt companies from certain registration requirements and related rules of the SEC, allowing them to use innovative trading systems to trade eligible tokenized securities. For example, companies seeking to operate automated market making systems for tokenized securities may face challenges in complying with the SEC's national market system regulatory requirements. Such systems, their operators, or personnel interacting with them may also need to register as broker dealers, clearing institutions, or exchanges. Due to the fact that only a small number of securities have been tokenized so far, companies may be unwilling to invest resources in identifying and resolving regulatory barriers to trading and settlement. Due to the limited number of places where such securities can be traded, companies may hesitate to issue tokenized securities. Exemption measures may help solve the problem of "chicken or egg first". It can also give the SEC time to develop and adopt persistent adjustments to its existing rules to adapt to distributed ledger technology (DLT).