Tuesday, January, 21, 2025

Chainlink Joins SEC Crypto Task Force to Boost Token Compliance Across Blockchain

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Anny Sam

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  • Chainlink joins the SEC crypto task force to help enforce token compliance rules.
  • Chainlink’s ACE tool brings real-time blockchain compliance for institutions.
  • SEC backs innovation-friendly policies to promote tokenization and market growth.

Chainlink Labs has joined the U.S. Securities and Exchange Commission’s (SEC) new cryptocurrency task force. This move comes as regulatory pressure intensifies across the digital asset market. The task force aims to define and enforce rules for tokenized assets.

Other significant blockchain institutions, including the ERC-3643 Association and the Enterprise Ethereum Alliance, are similarly now involved with this initiative. The announcement came shortly following the vote by the House for three bills related to cryptocurrencies.

They include the GENIUS Act, CLARITY Act, and the Anti-CBDC Surveillance State Act. In announcing the recovery in the case of the 2024 digital asset breaches, the SEC disclosed recovering more than $2.6 billion in fines. These actions show a step in the direction of standardized regulation for the growing crypto economy.

In this process, Chainlink has been providing a significant solution in the Automated Compliance Engine (ACE). ACE is engaged in running real-time checks across the public and private chains. It becomes linked with the systems of identity without the revelation of personal information. In this manner, institutional requirements at the local level get streamlined.

Chainlink partnered with Apex Group and GLEIF with the goal of making ACE more accessible internationally. They would be able to enable permission for accessing near $100 trillion financial assets institutions maintain off-chain. They could possibly be transferred on-chain upon regulatory necessities being taken care of.

This system will be most useful for Ethereum. With 65% of the value tied up in DeFi, it is still at the heart of the blockchain economy. In 2024, the peer-reviewed report concluded that the application of compliance rules with the help of engines like ACE could cut the incidence of cryptocurrency fraud by as much as 30%.

SEC Chair Proposes Exemption to Boost Tokenization

In addition, Chainlink and the Blockchain Association began an effort named Tokenized in America. Tokenized in America is an innovation and Blockchain use ranking for the American regions. The ranking is for the convenience of businesses and developers in becoming aligned with standardized tech standards.

Chainlink’s token, the LINK, has just witnessed a bullish price surge. It gained over 34% in the last month alone and went up from an average price of $10 to just under $18. This was because there is growing interest in tokenization for real assets and renewed hope for compliance products like ACE.

SEC Chairman Paul Atkins created an innovation exception for responsible growth. Tokenization was espoused by him as the future industry standard. While consumer protection is questionable for lawmakers, Atkins again cited the use of bright lines and transparency as the way forward. The balancing act could occupy the space between innovation and protection for investors.

Related Reading: Bitcoin Reclaims $120K as Institutions Return and U.S. Crypto Policy Clears Up

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