Chainlink praises SEC’s guidelines, setting stage for crypto integration in institutional finance
The post Chainlink praises SEC’s guidelines, setting stage for crypto integration in institutional finance appeared on BitcoinEthereumNews.com. The US Securities and Exchange Commission (SEC) has issued fresh guidance that could facilitate broader institutional use of digital assets. In a May 15 updated FAQ, the agency addressed how existing securities laws apply to broker-dealers and transfer agents involved in crypto services. Commenting on the development, SEC Commissioner Hester Peirce noted that the guidance is “incremental, not comprehensive,” signaling that broader regulatory updates are still underway. She added: “Many of the responses to these FAQs should not be controversial, as they simply reiterate what our rules already say or do not say.” Meanwhile, Chainlink welcomed the update, calling it a significant step forward because it addresses long-standing concerns from financial institutions about using public blockchains for recordkeeping, compliance, and data privacy. While the SEC’s guidance dropped with little fanfare, sources and records indicate it was shaped, in part, by a pair of closed-door meetings between Chainlink Labs and the SEC Crypto Task Force in March. Earlier this year, Chainlink’s legal delegation presented workflows demonstrating how smart contracts and privacy-preserving middleware could uphold securities law on public chains. Co-founder Sergey Nazarov then briefed staff on a cross-chain transfer-agent architecture that mirrors legacy processes but with automated compliance baked in. These sessions reportedly helped the SEC craft language around “unified golden records” and “smart-contract–driven compliance checks,” which now appear in the FAQ itself. SEC’s crypto guidance The update outlines how regulatory requirements like custody obligations and capital rules interact with digital assets. According to the SEC, broker-dealers holding non-security crypto, like Bitcoin and Ethereum, are not subject to the customer protection rules under Rule 15c3-3, which apply only to securities. This distinction gives the firms more precise boundaries on what types of digital assets fall within traditional custody rules. Additionally, the guidance clarifies how broker-dealers should treat positions in digital assets…
The post Chainlink praises SEC’s guidelines, setting stage for crypto integration in institutional finance appeared on BitcoinEthereumNews.com.
The US Securities and Exchange Commission (SEC) has issued fresh guidance that could facilitate broader institutional use of digital assets. In a May 15 updated FAQ, the agency addressed how existing securities laws apply to broker-dealers and transfer agents involved in crypto services. Commenting on the development, SEC Commissioner Hester Peirce noted that the guidance is “incremental, not comprehensive,” signaling that broader regulatory updates are still underway. She added: “Many of the responses to these FAQs should not be controversial, as they simply reiterate what our rules already say or do not say.” Meanwhile, Chainlink welcomed the update, calling it a significant step forward because it addresses long-standing concerns from financial institutions about using public blockchains for recordkeeping, compliance, and data privacy. While the SEC’s guidance dropped with little fanfare, sources and records indicate it was shaped, in part, by a pair of closed-door meetings between Chainlink Labs and the SEC Crypto Task Force in March. Earlier this year, Chainlink’s legal delegation presented workflows demonstrating how smart contracts and privacy-preserving middleware could uphold securities law on public chains. Co-founder Sergey Nazarov then briefed staff on a cross-chain transfer-agent architecture that mirrors legacy processes but with automated compliance baked in. These sessions reportedly helped the SEC craft language around “unified golden records” and “smart-contract–driven compliance checks,” which now appear in the FAQ itself. SEC’s crypto guidance The update outlines how regulatory requirements like custody obligations and capital rules interact with digital assets. According to the SEC, broker-dealers holding non-security crypto, like Bitcoin and Ethereum, are not subject to the customer protection rules under Rule 15c3-3, which apply only to securities. This distinction gives the firms more precise boundaries on what types of digital assets fall within traditional custody rules. Additionally, the guidance clarifies how broker-dealers should treat positions in digital assets…
What's Your Reaction?
