SIFMA mentioned that efforts to develop digital property and the underlying blockchain expertise may generate value financial savings in settlement, enhance the pace and safety of issuance and settlements, and increase market transparency, amongst varied different potential advantages.
Nonetheless, SIFMA additionally famous that a number of key points have to be addressed earlier than the market can totally develop.
Specifically, whereas most of the conventional regulatory frameworks and ideas that presently govern securities markets may theoretically be prolonged to digital property, “most of the authorized points are nonetheless but to be resolved, as market contributors, regulators and legislators proceed to study and perceive the use case for safety tokens and DLT,” SIFMA mentioned.
These points embody whether or not blockchain expertise can meet companies’ regulatory books and data necessities; whether or not broker-dealers can adjust to their asset management necessities when utilizing blockchain-based methods; and whether or not companies concerned within the clearing and settlement of digital asset transactions have to be registered.
“Because the trade strikes ahead with the broader adoption of those property and their supporting expertise, SIFMA believes additional dialogue between trade contributors and regulators will assist assist the additional development of the markets for the safety tokens and the adoption of the expertise that helps them,” SIFMA mentioned.
“Safety tokens and associated DLT are a chief instance of rising applied sciences which can have the power to supply new and cost-efficient strategies of capital formation,” mentioned Kenneth Bentsen, Jr., president and CEO of SIFMA, in a launch.
