SEC Commissioner Hester Peirce stated that the agency is considering a special exemption that would allow companies to use distributed ledger technology (t-21) for the issuance, trading, and settlement of securities. If the initiative is implemented, organizations will also be able to apply innovative systems for working with tokenized assets. m-23

The idea involves creating a regulated 'sandbox' where participants can test their products in real market conditions. This will lower barriers to entry and accelerate the adoption of new solutions, especially in the area of t-7 and digital bonds. The Commissioner emphasized that this is only a possible plan, but preparations are already underway. c-9

According to Peirce, excessive regulation may deter companies from entering public markets and slow down technological progress. t-30 acknowledges that current rules are not always suitable for new models, such as trading tokenized assets or automated market makers. The initiative to create exemptions could eliminate the 'chicken and egg' effect, where institutions are reluctant to digitize securities knowing there is nowhere to trade them. It is expected that admission will be granted under limited conditions — with reporting requirements, investor protection, and platform transparency. c-32

The project aims not to stifle technology with outdated rules. The SEC may temporarily allow the use of DLT systems without the need for full registration as a broker, clearinghouse, or exchange.

If implemented, the exemption will be granted on the condition of adhering to rules against manipulation and fraud. It is also planned to include obligations for disclosing risks associated with smart contracts and asset custody. Platforms will need to ensure SEC access to data and undergo regular audits. t-42

Peirce also suggested establishing bilateral cooperation with other jurisdictions so that participants can simultaneously test their products both in the U.S. and abroad. c-37

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