The United States Securities and Exchange Commission (SEC) has given regulatory authority to the Boston Security Token Exchange (BSTX), a new facility of the Boston-based BOX exchange, to operate as a blockchain-based securities exchange.
BOX and Overstock’s blockchain arm, tZERO, developed BSTX to seek clearance for the introduction of publicly-traded registered security tokens. However, BSTX may leverage blockchain technology for faster settlements in traditional markets. Thanks to its SEC clearance to operate as a national securities exchange. The SEC claims:
“The Commission observes that the [BSTX] Exchange’s current proposal does not include digital token trading or any other additional use of blockchain technology.”
While the SEC previously refused BSTX authority to offer crypto-focused services, the recent licence permits the facility to use BSTX Market Data Blockchain, a proprietary market data source.
In addition, BSTX will leverage blockchain technology to assist investors to receive speedier transaction speeds on the same day (“T+0”) or the next day (“T+1”), rather than the typical two-business-day (“T+2”) settlement cycle.
The SEC imposed four requirements for BOX in accordance with BSTX’s activities. In addition to the regulatory clearance based on BSTX’s rule modification proposals (SR-BOX-2021-06).
Joining the necessary national market system plans for equities trading. As well as guaranteeing a Regulatory Services Agreement with FINRA, Intermarket Surveillance Group membership for the BSTX facility. And an appropriate governance structure, are all requirements.
According to reports, the SEC is looking into certain of Gemini, Celsius Network, and Voyager Digital’s high-yield crypto loan schemes.
The SEC is investigating whether crypto lending services should be classified as securities, as previously reported. According to a Bloomberg storey, the SEC’s biggest concern is crypto lending services’ high-yield offerings.