SEC Commissioner Releases Proposal on US/UK Joint "Digital Securities Sandbox"

ChainCatcher news, according to Forbes reporter Eleanor Terrett on X, SEC Commissioner Hester Peirce announced a proposal for a joint "digital securities sandbox" between the US and the UK, where companies from both jurisdictions can establish a safe harbor. This allows for the secure experimentation of using blockchain technology for securities trading without the fear of regulatory warnings. In her letter, she proposed inviting the US to participate in the "sandbox," which was initially proposed for UK companies by the Bank of England and the Financial Conduct Authority.

Peirce's proposal would enable the US Securities and Exchange Commission to establish a "micro-innovation sandbox," allowing US companies to:

• Use blockchain technology to conduct limited business in the US for trading securities without the fear of being targeted by regulators.
• The duration in the sandbox would be up to 2 years, with the possibility of extension.
• FinHub will assist companies in understanding and navigating the sandbox. Companies can choose some of their own regulatory rules but must adhere to certain government guidelines to protect investors.
• If the time in the sandbox is successful, companies may be able to graduate and continue their activities under special permission from regulators.