ERC-3643 Association president Dennis O’Connell observed “a noticeable shift in tone” and openness to blockchain standards, telling that the SEC showed such a shift.
The US Securities and Exchange Commission (SEC) discussed a token standard with industry players to support the compliant issuance and transfer of tokenized securities.
The SEC’s Crypto Task Force held a meeting on Thursday with Ethereum-aligned organizations, including the ERC-3643 Association, Chainlink Labs, the Enterprise Ethereum Alliance, and Linux Foundation (LF) Decentralized Trust.
During the meeting, the blockchain proponents and the SEC explored how open standards like ERC-3643 and compliance frameworks like Chainlink’s Automated Compliance Engine (ACE) could help bridge onchain technology with traditional regulatory requirements.
SEC Signals Openness to Industry-Led Blockchain Standards
ERC-3643 is a token standard aiming to become the foundation for compliant capital markets on the Ethereum network. It’s supported by the ERC-3643 Association and companies like Chainlink. Chainlink ACE is a smart-contract-based framework for tokenized assets such as securities or real-world assets (RWAs).
Dennis O’Connell, president of the ERC-3643 Association, observed a noticeable shift in tone and approach during the meeting compared with previous years, he told .
Openness toward industry-led standards was shown by the SEC during the meeting, O’Connell said. He told that the task force had not previously considered the importance of open standards in blockchain.
“We laid out our case on why, like other industries, including traditional finance, standards are fundamental to growing crypto in the US and enabling securities to come onchain,” O’Connell added.
Industry representatives presented proposals on all key elements of a regulatory framework for tokenized securities in the meeting. This included identity, compliance, registry, and control.
O’Connell told that the task force did not take a definitive stance on tokenized securities. He stated that they were “open to understanding how new technologies in blockchain meet concerns around identity, control, and compliance.”
O’Connell stated that the meeting resulted from months of behind-the-scenes work, ultimately constituting a “major step for the industry.”
He stated that the ERC-3643 Association and its partners plan to continue engaging with the SEC Crypto Task Force and other US government agencies, hoping the US will catch up with global regulation and eventually lead in blockchain adoption for capital markets.
SEC Chair Atkins Discusses Boosting Tokenization
Positive remarks from the SEC’s head followed the meeting, signaling support for tokenization in the US.
On Friday, Bloomberg reported that SEC Chair Paul Atkins was considering the creation of an innovation exemption within its framework to boost tokenization.
Atkin stated that the SEC was considering changes that would promote tokenization, including an exception that would allow new trading methods to support tokenized securities development.
