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.
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.
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.