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- SEC removes key regulatory barriers for broker-dealers handling non-security digital assets.
- Transfer agents can now legally use blockchain for securities recordkeeping under new SEC guidelines.
- Chainlink played a vital role in influencing the new compliance-focused crypto regulations.
SEC has issued new instructions that may motivate major financial institutions to be more involved with digital assets. The update, launched on May 15, provides information on how existing laws for securities apply to broker-dealers and transfer agents who handle cryptocurrencies.
It aims to fix people’s ongoing confusion concerning the custody of digital assets such as Bitcoin and Ethereum. If digital assets held by a broker-dealer are not securities, they can be kept outside of the locations required by Rule 15c3-3. This move lowers the entry barrier for traditional institutions to handle crypto assets without facing prior regulatory hurdles.
The SEC also applies broker-dealer rules and allows transfer agents to use distributed ledger technology (DLT). Now, these agents can keep securities records on blockchain networks if their systems are secure and meet recordkeeping laws. This is the first time the government has officially accepted blockchain in the securities infrastructure.
According to SEC Commissioner Hester Peirce, these guidelines are mostly slight but can reduce the market’s uncertainty. She stated that there will be more critical updates soon. The SEC signaled through the statement that it intends to offer clearer laws for the crypto industry.
Chainlink’s Involvement Signals Growing Regulatory Trust in Public Blockchains
Though not widely recognized, Chainlink helped shape the structure of the global guidance in this sector. This year, Chainlink Labs members participated in discussions with the SEC’s Crypto Task Force. During the meetings, they showed how smart contracts and data privacy tools apply to securities laws.
Thus, the SEC is now using terms such as “unified golden records” and “smart-contract-driven compliance” in its documents. As per Chainlink, these updates overcome the issues that organizations faced when applying public blockchain technology to meet compliance and recordkeeping standards.
The SEC has now accepted public blockchains for use in securities work, and major institutions are set to show increased interest. Being involved early with regulators has allowed Chainlink to become a leader in connecting crypto and fiat finance. As more firms receive regulatory backing, more companies could use blockchain-based technology.
The SEC’s latest rules have made it easier for institutions to participate in crypto markets. With the update on custody and blockchain in official records, large financial companies now find it easier to get involved with digital assets.
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