Templum, the Tokenized Asset Offering (TOA) and secondary trading platform, sent an official letter to the US Securities and Exchange Commission (SEC) with a request to clarify the regulatory provisions relating to the area STO. The argumentation of the application indicates that the recent fintech revolution requires the construction of more transparent provisions regarding the post-transactional activity of digital resources.
STO is a very young industry that has made its first steps on the market during the entire 2018 year, during which traditional financial assets, such as investment funds, shares and even real estate and works of art, were successively subjected to the process of tokenizacji.
Despite that, it still has not been possible to develop precise legal solutions in this field. Lack of consistent rules in the STO sector caused that in the fall of 2018 year The US Congress has asked the president of the SEC, Jay Clayton for presenting an official position in the case security tokens. In response, the Commission stated that STO is subject to the same regulations as traditional securities. This position, however, did not satisfy the industry representatives, including platform Templum, in which the failure to regulate this issue may hinder further development of the security tokens sector.
Therefore, the platform board decided to ask the Commission again for clarification of legal regulations, including the use of modern technologies in the STO turnover, such as blockchain.
In the petition issued by the Templum, particular emphasis was placed on three aspects:
First The Commission should precisely determine when a platform based on blockchain technology is to register as a settlement company, while determining the permitted scope of using blockchain technology.
Secondly The SEC should provide clear guidelines when the platform is to register as a transfer agent and guidance for investors of digital assets regarding the use of the entity's services.
Thirdly and, the SEC should amend the regulations related to supervision and protection in the STO area in order to increase the security of transactions.
The Templum Board also stressed that technologies such as fintech and blockchain have enormous potential, but require more support from regulatory authorities. He also declared that he would make every effort to ensure that this industry, which still raises a number of doubts, developed in a balanced and honest way, in order to ensure maximum benefits for all its participants.
It is not yet known how the Commission will refer to this petition, but in October 2018 SEC took an important step towards the STO industry by launching a special portal FinHuB providing necessary information to newly established companies aiming at blockchain technology. This solution aims to empower and better understand legal procedures in the security tokens sector.