Connect with us

Digital Securities

The Blockchain Association Creates a Security Token Working Group

mm

Published

 on

Blockchain Association Forms Security Token Working Group

The Blockchain Association raised eyebrows across the cryptocommunity this week after announcing the formation of a new Security Token Working Group. This group will help ensure that policymakers enact a regulatory framework that enables innovation and growth of the blockchain sector. The news signals further organization among the US market as more companies request clarity from regulators.

Security Token Working Group

Ultimately, the Security Token Working Group will coordinate with regulators to develop legislation that ensures the market is able to continue its expansion. Specifically, the team plans to communicate with members of Congress, the SEC, FINRA, and other U.S. regulators to accomplish this task.

Importantly, the group will also work in tandem with the broader blockchain industry to stay up to speed on all the latest developments. In this manner, the group can keep regulators in the loop on what to expect as these technologies emerge. Consequently, this approach will allow the US to take full advantage of these revolutionary changes.

Blockchain Association Homepage

Blockchain Association Homepage

Unfortunately, the opposite scenario is currently true in the US market. A lack of clarity on the part of lawmakers has left the market dependent on antiquated legislation. Specifically, the current securities regulations were developed when the only option was a paper-based solution. As such, these laws do not take into account the current capabilities of the market. The Blockchain Association wants to do away with this prohibitive legislation, and with the input of the market, create new laws that allow the US to finally embrace and take advantage of blockchain’s efficiency.

Blockchain Association

The Blockchain Association entered the market in 2018 with the goal to create a unified voice within the crypto sector. Importantly, the group includes many of the most influential firms in the game including blockchain networks, trading platforms, and early-stage investors. For example, Coinbase, CIRCLE, and the STELLAR development Group are all members of the organization.

Security Token Group Leaders

The Security Token Working Group will feature Alex Levine, Chief Legal Officer of TokenSoft, and Georgia Quinn, General Counsel of CoinList as Coo-Chairs. Notably, Levine brings over 17 years of legal expertise from the SEC, CFTC, and a number of blockchain firms to the table. Additionally, Quinn is recognized as an industry leader in the space.

Regulators Need Some Urging

Hopefully, the Security Token Group can get their point across to regulators in a timely fashion. Currently, SEC regulators have shown no desire to approve major blockchain projects. The lackluster response was summed up after SEC Commissioner Peirce published a dissent in response to Release No. 34-88284; File No. SR-NYSEArca-2019-39. This application was to permit the Bats BZX Exchange, Inc. to list and trade shares of the Winklevoss Bitcoin Trust. The Commissioner argued that the SEC is unwilling to provide blockchain projects clear cut guidelines. Consequently, this scenario leaves blockchain startups in limbo.

More Sway Needed

Recognizing the seriousness of the situation, the Blockchain Association hopes to sway regulators in the future using a combination of education and facts. Importantly, the US is at an important crossroads. If the country wants to remain a leader in the digital economy, regulators must embrace blockchain technology now.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

Newsletter Subscription

Advertiser Disclosure: Securities.io is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

Securities.io is not a registered broker, analyst, or investment advisor.