US SEC Registers Digital Securities Platform Securitize as Transfer Agent

In June, Securitize partnered with the Japan Security Token Association to promote the creation of a security token ecosystem in the country. Their joint initiative ostensibly aims to foster security token adoption in financial markets by promoting practical use cases and clarifying regulatory and legal frameworks.

The United States Securities and Exchange Commission (SEC) has registered Securitize, a digital securities platform backed by crypto exchange Coinbase, as a transfer agent, according to a press release published on Finextra on Aug. 21.

Securitize – which claims to be the first transfer agent with a working blockchain protocol and active securities issuers registered with the SEC – is now able to operate as an official keeper of records about changes of ownership in securities.

Carlos Domingo, co-founder and CEO of Securitize, said:

“We can increase the amount of securities issued on the blockchain and give comfort to people that this is a regulated space. … The SEC has also started approving other types of exempted securities like Reg A+ and down the road those people will need transfer agents.”

Securitize fosters security token adoption

This spring, Securitize announced the launch of its Securitize Ready Program, which includes such industry majors as Coinbase Custody, OpenFinance, Rialto Trading, CBlock Capital and others.

The program allows clients to use the various services offered by the partner firms to issue security tokens on the Securitize platform, and purportedly makes it easier for organizations to design and issue their own tokens.

US Security Token Platform TokenSoft Joins Blockchain Association

Security tokens platform TokenSoft has joined the U.S.-based crypto lobbying group Blockchain Association (BA).

The San Francisco-based token issuance platform said in an official announcement on April 27 that it would be entering the D.C.-based organization to “educate regulators and elected officials on the advantages of utilizing blockchain technology and the need for responsive, national regulatory standards.”

Announcing that the firm would be taking a leading role in the BA, TokenSoft said the move was aimed for guidance on using blockchain technology under current regulations, enhancing regulatory compliance on security tokens standards, and ultimately achieving greater automation for blockchain infrastructure.

Kristin Smith, Executive Director of The Blockchain Association said in a statement that the addition of TokenSoft to the organization would provide “important perspective in support of a pro-business and pro-consumer regulatory solution to securities law.”

TokenSoft Chief Legal Officer Alex Levine will also be co-chairing the group’s Security Token Working Group.

Legal assistance from Blockchain Association

The BA has come out in support of other blockchain firms facing legal challenges. The organization has already filed at least two amicus curiae briefs in 2020 for Canadian messenger Kik and Telegram. Both companies are facing litigation from the U.S. Securities and Exchange Commission.

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