Today, in a Media room after his opening markings on the SEC-CFTC round table on regulatory harmonization efforts, the US Securities and Exchange Commission (SEC) President Paul Atkins expressed his enthusiasm in terms of bringing tokenized securities on-chain, although he did not give any insight into what platforms or protocols could do.
The latter can be particularly important for Bitcoin enthusiasts because the wallets you use to trade tokenized securities on-chain will probably require identifying information and such a rule can be wasted to Bitcoin cartoons.
So I asked the President how securities that came on the chain looked like him: Would it look like gated platforms like Fidelity and Charles Schwab, employing Blockchain to run transactions on the back, or would it look more like tokenized shares acting on decentralized exchange?
He did not answer my questions directly.
Instead, he first shared how securities trading on blockchains can reduce the settlement time.
“The amazing thing about tokens [is that] You can have the payment and exchange of the actual asset online at the same time – it’s T zero, basically immediate approval, ”President Atkins told me.
And he followed up in this statement with something mildly about language.
“So maybe we will even have to incorporate as a speed bump to make sure we have no mistake or wiring money to the wrong place,” the chairman added. “We work realistically in the next year or two to try to get where we have good rogs around the system.”
Words like “speed bump” and “budrails” triggered alarm bells as they indicate some form of control and where there is control, there are often KYC.
If tokenized securities end up shopping within the fenced gardens in traditional brokers, the question of KYC is not so, as these platforms are already kyc their customers.
The problem becomes more critical if tokenized securities can be traded through protocols such as Uniswap via wallets such as Metamask and Trust Wallet, which would probably be necessary to kyc their users.
If this happens, the following question raises: Will this lead to all crypto -drawing books to kyc their users? Will this rule eventually blow over to Bitcoin-Kun wallets?
Based on my interaction with the chairman, I got the impression that he does not currently have the answers to these questions. That is, he did not evade as much as he really did not seem to know exactly what the wider image around tokenized securities looks right now as he is waiting for Congress to act.
Much in terms of crypto market regulation hangs in balance as the Senate discusses and revises the Law of Clarity (clarity), the bill on digital asset market structure. The chairman declared that he is aware of clarity as it works through the legislative process.
“There is the market structure that cleared the house and is now [being discussed] In the Senate, ”he told me.” We’ll see what happens. “
The Bitcoin magazine will follow up with chairman Atkins on this question when and if clarity goes.
In the meantime, if you want to protect your right to use your Bitcoin designbook privately and allowed, remember to contact your chosen officials as part of the Satoshi campaign.