Further Dialogue Between Stakeholders And Regulators Necessary, Says New White Paper On Security Tokens
24 Nov 2020 — Further dialogue between stakeholders and regulators is necessary to address 3 key questions in ensuring the security token market to fully develop, says a new white paper from SIFMA and PwC.
💥 Is distributed ledger technology #DLT sufficient to satisfy industry participants’ books and records requirements?
💥 Can meeting possession or control requirements when using DLT based systems be complied with by broker-dealer?
💥 Will certain parties involved in the clearing and settlement of a transaction require registration as a clearing agency?
The paper provides a foundational understanding of how DLT and the #securitytokens interplay with the current securities market and examines key operational challenges and regulation clarity faced by U.S. broker-dealers hoping to adopt this technology.
“Many of the concepts and regulatory frameworks that govern current security markets may be extended to Security Token markets with certain modifications. However, many of the legal issues are still yet to be resolved,” said SIFMA
Ken Bentsen, President and CEO of SIFMA, added that this study would help market participants in understanding the potential impacts of security tokens on existing securities regulatory and operational frameworks in the U.S.