Esther Pierce proposed creating a single sandbox for tokenizing securities in the US and UK

SEC Commissioner Esther Pearce proposed creating a joint regulatory sandbox for the US and UK so that participants could conduct their activities on equal terms in both countries. As part of this initiative, an information exchange agreement will be concluded between US and UK regulators. Participating firms will be able to serve real clients while eliminating possible shortcomings of their projects.

The main goal of this initiative is to determine whether distributed ledger technology (DLT) can facilitate the issuance, trading and settlement of digital securities without negative consequences. Any organizations not included in the blacklists of the US and UK governments will be able to participate in the sandbox.

The SEC plans to conduct a public survey to prepare a list of eligible activities for sandbox participants. Companies will be able to participate in the program for two years. Those interested in participating will need to submit applications to the SEC's Innovation and Financial Technology Strategic Hub (FinHub). This unit will monitor companies' activity and compliance with anti-fraud regulations.

Esther Pearce noted that startups that participated in the UK's Financial Conduct Authority (FCA) sandbox between 2016 and 2019 attracted significant investment and stayed in the market longer than other companies. On this basis, Pearce proposed expanding the UK regulatory sandbox to accept applications from US companies.

Pierce emphasized that the idea of ​​​​creating a single regulatory field emerged against the backdrop of criticism of the SEC from cryptocurrency companies, accusing the agency of unnecessary enforcement measures against the industry. This proposal is a step towards crypto companies wishing to cooperate with the United States.

Last year, Esther Pierce called on American crypto companies not to leave the country, expressing hope that the authorities would be able to clarify the regulation of cryptocurrencies. She also cited the EU Cryptocurrency Bill (MiCA) as an example, calling it a model for industry oversight.

Esther Pierce's proposal to create a single sandbox for tokenizing securities in the US and UK could be an important step for the development of the cryptocurrency industry. This initiative will enable companies to operate effectively in both jurisdictions while ensuring high standards of security and transparency.