The U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force recently intensified its examination of how public blockchain technology can facilitate the issuance and trading of tokenized securities. The group held separate meetings last week with major financial players and blockchain innovators, including Nasdaq, Plume Network, and Etherealize, to discuss integrating securities onto public blockchains.
A consistent theme emerging from all three discussions was the strong advocacy for a “regulatory sandbox” concept. This approach would create a controlled environment for testing new digital asset frameworks.
During a May 21 meeting, executives from Nasdaq urged the Task Force to maintain existing registration rules for tokenized shares, bonds, and exchange-traded funds (ETFs). Furthermore, they proposed the authorization of a new “ATS-Digital” venue, designed to list digital asset investment contracts alongside commodity-style tokens.
Nasdaq also sought a joint safe harbor from both the SEC and the Commodity Futures Trading Commission (CFTC) for assets with uncertain regulatory status. This “regulatory sandbox” would allow issuers to self-certify classifications while adhering to light-touch disclosure standards. SEC Commissioner Mark Uyeda had previously expressed support for such an initiative in April. Nasdaq emphasized that tokenization should not undermine national market system protections and that any move towards atomic settlement must balance liquidity and operational risk.
At a May 22 meeting, Arbitrum-based Plume Network informed the SEC that permissionless blockchains are optimally suited for real-world asset tokenization. They advocated for a regulatory sandbox specifically covering the 1933 Securities Act and the 1934 Exchange Act. Plume’s proposal included safe harbor relief that explicitly accounts for decentralized finance (DeFi) mechanics and “credible neutrality,” alongside tools to calibrate rules for both primary offerings and on-chain secondary trading. Plume also sought guidance on tokenizing US and non-US equities subject to the Regulation National Market System and other regulatory regimes.
