Trend of Tokenization Series: 'Securitize' Gets Green Signal From US SEC

Unlike utility tokens, Security tokens are exclusively segregated as securities. Hence, the crypto firms have to abide by the rules subject to the standard regulations mandated by authorities such as the SEC. 

The US Securities and Exchange Commission (SEC) and its staff “have spent a significant amount of time” focusing on the blockchain and crypto-assets with a slightly reluctant mode and that is a trend lingering currently.

The US regulator seemed little passive on the Bitcoin’s possibilities by suspending all trading in securities of Bitcoin Generation (BTGN), the first publicly traded cryptocurrency exchange.

The US SEC has again deferred their decision on several other applications, like the approval of Bitwise’s Bitcoin ETF application, the regulator is due to its review whether the applications fulfill the pre-requisites and ensure safeguards investors’ interests. 

But for now, on the back of security tokens being the trending talk of blockchain-driven innovations to conventional financial services, “Securitize’’, a company that transforms financial assets into tokens and administers digital securities on the blockchain, has been registered as a transfer agent with the United States Securities and Exchange Commission. While this enables them with the liberty to maintain records for the transfer of securities, where the company also claims that being SEC-compliant will assist boost the platform’s adoption.

Carlos Domingo, the CEO of Securitize, explained their crucial milestone as a significant phase towards exhibiting investors space is now regulated. While transferring procedure of SEC-registered securities generally incur charges of between $100 - $150, whereas Securitize offers to record them costlessly, providing further incentive to clients to utilize the platform, claims Carlos Domingo.