Token Startup Templum Seeks SEC Clarity on Post-Trade Activities

Regulated token trader Templum has petitioned the SEC seeking clarification on the status of post-trade activities conducted over blockchains.

AccessTimeIconDec 20, 2018 at 4:00 p.m. UTC
Updated Sep 13, 2021 at 8:42 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Regulated token trader Templum wants to clarify how digital assets tracked or tokenized on a blockchain might fit within U.S. securities regulations.

To that end, the company filed a rulemaking petition to the U.S. Securities and Exchange Commission (SEC) last week, in which the firm outlined how crypto assets and blockchain technology may be leveraged in certain forms of securities transactions.

The company is asking for clarity on how these nascent technologies fit into current regulatory schemes, said Templum co-founder and CEO Vince Molinari. "It doesn't really exist in its current framework, at least in our opinion," he told CoinDesk.

The petition largely looks at the market infrastructure for digital assets, some of which may be unregistered securities.

"We encourage the SEC to provide needed guidance related to post-trade activities in the digital asset space," the petition reads.

Specifically, Templum is looking to the SEC to explain when a blockchain platform must register as a clearing corporation or how a clearing corporation might use blockchain, and when a blockchain platform must register as a transfer agent or tell digital asset issuers when they must use a transfer agent. It also seeks to know when the SEC might modernize existing custody and customer protection rules to allow for blockchains used to track securities transactions.

Further clarity is needed around the different types of information stored on a blockchain. Digital assets might simply be recorded on the ledger, or they may be tokenized, Molinari said. Other questions relate to custody rules, and how they may apply.

Templum's petition was submitted as a part of the company's advocacy work in the blockchain space, Molinari added. In particular, he sees digital assets moving to blockchain platforms, and soon, saying:

"I don’t think this is a five-year off strategy, I think as 2018 became the [year] of the security tokens, I think 2019 is going to surprise a lot of folks in the acceptance and [use] of digital assets."

The migration of securities – particularly unregistered ones – to digital securities platforms could happen over the next six to 18 months, he predicted.

"We're not creating an entirely new industry, it exists today. We recognize that these are securities, [and now] we're talking about the private placement marketplace," he explained.

SEC image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.