The U.S. Securities and Exchange Commission (SEC) recently met with key industry stakeholders to explore a token standard that could enable the compliant issuance and transfer of tokenized securities.
The SEC’s Crypto Task Force held discussions last Thursday with several Ethereum-affiliated organizations, including the ERC-3643 Association, Chainlink Labs, the Enterprise Ethereum Alliance, and the Linux Foundation’s Decentralized Trust initiative.
The meeting focused on how open standards such as ERC-3643 and compliance tools like Chainlink’s Automated Compliance Engine (ACE) could help integrate blockchain technology with existing regulatory frameworks.
ERC-3643 is a token standard designed to serve as a regulatory-compliant foundation for capital markets on the Ethereum network. It is backed by the ERC-3643 Association and supported by organizations like Chainlink. Chainlink’s ACE is a smart contract–based compliance framework for managing tokenized securities and real-world assets (RWAs).
SEC Signals Willingness to Embrace Industry Standards for Blockchain Compliance
Dennis O’Connell, president of the ERC-3643 Association, told Cointelegraph that the SEC demonstrated a clear shift in tone and approach during its recent meeting with blockchain industry representatives, marking a departure from previous years.
“The Task Force was very welcoming, engaged, and motivated to bring the U.S. into a leadership position,” O’Connell said.
According to O’Connell, the SEC expressed openness toward industry-led standards—something the task force had not previously given much attention to. He emphasized that the delegation highlighted the critical role of open standards in enabling the growth of crypto in the U.S. and facilitating the transition of securities onto blockchain networks.
“We laid out our case on why standards—just like in other industries, including traditional finance—are essential for scaling crypto and bringing securities onchain,” he said.
During the meeting, industry participants presented a comprehensive proposal covering key components of a regulatory framework for tokenized securities, including identity verification, compliance mechanisms, registries, and control systems.
Although the SEC task force did not take a formal position on tokenized securities, O’Connell noted they were receptive to exploring how blockchain technologies can address regulatory concerns around identity, control, and compliance.
He described the meeting as the culmination of months of behind-the-scenes effort and called it a “major step forward for the industry.”
Looking ahead, O’Connell said the ERC-3643 Association and its partners intend to maintain ongoing engagement with the SEC’s Crypto Task Force and other U.S. agencies, with the aim of helping the country align with international regulatory progress and ultimately take a leading role in blockchain adoption for capital markets.
SEC Chair Atkins Advocates for Advancing Tokenization Efforts
The meeting was followed by encouraging comments from SEC Chair Paul Atkins, signaling growing support for tokenization in the U.S.
According to a Friday report from Bloomberg, Atkins revealed that the SEC is exploring the possibility of introducing an “innovation exemption” within its regulatory framework to accelerate the development of tokenized assets.
He noted that the agency is considering regulatory adjustments that would enable new trading mechanisms specifically designed to support tokenized securities.
“If it can be tokenized, it will be tokenized,” Atkins stated, acknowledging the inevitable shift of asset markets toward blockchain-based infrastructure.
