SEC’s Crypto Task Force Meets Nasdaq and DeFi Startups

Highlights:

• The SEC’s Crypto Task Force is examining ways to use regulatory sandboxes for tokenized securities trading.
• Nasdaq advocated for a new “ATS-Digital” trading venue alongside existing rules.
• Etherealize urged for blockchain recognition as official share registers for efficiency.

A key meeting of the U.S. Securities and Exchange Commission’s Crypto Task Force looked at how public blockchains can support tokenized securities issuance and trade last week. Three separate meetings were organized by the Task Force with Nasdaq, Plume Network and Etherealize. The talks mostly covered how tokenized shares, bonds and exchange-traded funds on public blockchains could be regulated. In addition, there was interest from all sides in developing a regulatory sandbox for digital securities.

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Nasdaq advocated for strict rules that place tokenized shares and bonds under existing registration standards. The exchange proposed the creation of a new trading platform called “ATS-Digital.” The platform would feature digital asset contracts alongside commodity-style tokens. Nasdaq also urged authorities to partner with the Commodity Futures Trading Commission to develop a safe harbor for assets whose legality is not yet established.

In addition, using the safe harbor or sandbox would let issuers certify themselves and maintain light disclosure standards. Nasdaq stressed the importance of keeping national market system rules in place and focusing on the best balance between liquidity and risks during atomic settlement.

U.S. SEC discusses tokenized securities with Nasdaq and crypto firms

The Crypto Task Force of the U.S. Securities and Exchange Commission (SEC) recently met with Nasdaq, Plume Network and Etherealize to explore how public blockchains could enable the issuance and trading of…

— CoinNess Global (@CoinnessGL) May 27, 2025

Plume Network and Etherealize Call for Regulatory Flexibility

Permissionless blockchains were recognized by the Arbitrum-based Plume Network as a beneficial choice for real-world asset tokenization. It urged the use of a regulatory sandbox that would allow for some relief from requirements in the 1933 Securities Act and the 1934 Exchange Act. Plume pointed out that adding aspects of decentralized finance and remaining neutral is necessary.

The company requested greater clarification for the tokenization of U.S. and non-U.S. equities, especially as they related to the National Market System regulations. The proposal recommended that rules from primary offerings and secondary on-chain trading should be calibrated to match how blockchain works.

Meanwhile, Etherealize, operating with policy firm MetaLeX, pointed out the challenges resulting from the present rules involving transfer agents. They said these rules compel issuers to maintain offline ledgers along with on-chain records. Moreover, Etherealize pushed for the SEC to see secure blockchains as valid share registers. They called for exemptions from registration for transfer agents for those who use tokenization protocols.

Furthermore, the group suggested a quick path for tokenized securities specialists and a pilot program to evaluate smart contracts for managing corporate actions. Both dividends and voting by shareholders are included in these actions.

Industry Seeks Clear Rules and Pilot Programs

All meetings ended with participants advocating for modular rulebooks and a phased pilot program. They favored technology-focused updates to the rules, all while maintaining the main safeguards for investors. Based on the input, the Crypto Task Force would include sandbox models, trading venues, and reforms for transfer agents in future drafts. Moreover, industry progress largely depends on clear taxonomy and transparent regulatory rules.

The discussions show how the Crypto Task Force is paying more attention to how blockchain technology may aid securities markets. Market participants are working together with regulators to build useful guidelines. The goal of these frameworks is to link new blockchain ideas with existing laws in the securities industry. Additionally, the idea of a regulatory sandbox focuses the effort on experimentation with tokenized securities in a supervised setting.

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