The Securities Transfer Association (STA) indicated that company-authorized tokenized securities should be given priority treatment in future rules. As Wall Street and encryption companies compete to create a multibillion-dollar market for tokenized securities, the debate on how stocks could be moved to the block chain is gradually entering the United States regulatory landscape. STA called on the United States Securities and Exchange Commission (SEC) to give priority to tokenized securities supported by the issuer when developing chain-up rules for traditional securities.
In the context of increased competition in the monetization market, the request by STA focuses on the legal structure of monetization. The Association ' s letter indicated that monetized assets could become a large market, with Citibank predicting that the monetized securities market could reach $5.5 trillion by 2030.
With the evolution of monetization, various legal structures have emerged. In the issuer-supported model, the company authorizes the monetization of shares and records them in its official shareholders ' register, giving investors the same legal rights as traditional shares. Third-party models, on the other hand, rely on intermediaries, involving hosting and synthetic structures. In a statement, the SEC recognized these differences and noted that the structure of third-party tokenization and investor interests might differ.
In its letter, STA called for any innovative exemption or pilot scheme for tokenized securities to apply only to models supported by the issuer and requested the SEC to ensure that the issuer consents and transparent disclosure and compliance safeguards are provided before allowing a third-party model.
Related issues will become more important as major financial institutions and exchanges plan to expand the products of monetized securities under a clearer regulatory framework. Companies such as Coinbase and Robinhod have begun to roll out stock products based on block chains, while the NASDAQ and the New York Stock Exchange are also active in setting up a monetized securities infrastructure.
In general, the STA letter stressed the importance of ensuring that market integrity and innovation go hand in hand in the monetization market and called on regulators to identify relevant policies as soon as possible.