This week, the STO market came one step closer to a major milestone after the Boston Security Token Exchange (BSTX) announced plans to withdraw and resubmit its proposed rulebook. In April, the Securities and Exchange Commission (SEC) requested more clarity from the company regarding its operations. Today, the SEC received its data in the form of the amended rulebook.
Importantly, the news demonstrates the tenacity behind the BSTX project. Additionally, it opens the door for potential legal precedents as the trial moves forward. Now, BSTX developers believe they provided the SEC with the in-depth understanding needed for regulators to approve the security token exchange.
Examination Needed – Boston Security Token Exchange
According to company executives, the goal of the resubmission is to give regulators more data and time. Specifically, the SEC continues to evaluate how a regulated national security token exchange could affect the market. Additionally, the SEC needs to amend certain requirements that derive from paper-based settlements that are not necessary when using blockchain technology.
In a recent interview, Lisa Fall, CEO of BSTX said her firm was extremely “grateful to the staff of the SEC” for their continued review of BSTX. She also spoke about the importance of the decision to withdraw and resubmit the application. This go-around includes more details on the inner workings and processes of the platform. Fall explained that this accomplishment would mean a major step forward for the entire security token sector. Specifically, it would open the sector to traditional investment firms.
Fall touched on BSTX’s ultimate goal to become the first nationally regulated security token in the US. She then stated that she hoped regulators would utilize the current situation to expedite the review of the updated rulebook. Due to the Coronavirus virtually shutting down the global economy, regulators have a unique moment of clarity to review all the data in a timely fashion.
BSTX – Flexibility is Crucial
BSTX develops already introduce multiple modifications to the application since its original filing in 2019. In one instance that took place in February, the company amended the market maker and listings standards sections of the application. This move was meant to bring BSTX in line with other national exchanges such as the New York Stock Exchange. Now, developers appear to take whatever steps are necessary to bring BSTX to the masses.
Boston Security Token Exchange (BSTX)
Importantly, BSTX is a joint-venture between BOX Digital Markets LLC and Overstock’s subsidiary, tZERO. For its part, BOX provides strategic leadership and regulatory advice. These tasks include interacting with federal regulators and maintaining compliance mechanisms in place.
The technical aspects of the platform will be tZERO‘s responsibility. As such, tZERO developers are responsible for all of the blockchain protocols, smart contract programming, and the execution and settlement protocols. Notably, tZERO is one of the most recognized names in the STO sector.
Boston Security Token Exchange – You See Them Coming
This latest submission to the SEC could be the one that gets BSTX approved. If not, you can bet that the company plans to make whatever changes the SEC requires to bring this innovative platform to the market. For now, the entire cryptocommunity awaits this crucial ruling.