$BTC

The SEC is exploring a potential exemption to support blockchain-based securities trading.

SEC Commissioner Hester Peirce announced a proposal aimed at reducing regulatory hurdles for companies looking to issue and trade securities via Distributed Ledger Technology (DLT).

The Commission is considering a conditional exemption that would allow eligible firms to use blockchain for trading, clearing, and settlement—without needing to fully adhere to traditional financial regulations.

Peirce emphasized that existing laws often act as barriers for innovative, digitally native companies trying to enter regulated markets.

The goal is to temporarily ease restrictions for blockchain platforms while the SEC works on more modern, long-term regulations.

However, the exemption won’t be unrestricted. Participating companies must follow specific guidelines—such as clear disclosure of platform operations, investor protections, and strong safeguards against fraud and market manipulation.