- CoinCenter is urging the SEC to prioritize rulemaking over piecemeal case-by-case reduction.
- Blockchain techniques can substitute switch brokers with issuer-driven recordkeeping.
- The SEC really useful avoiding pressured intermediaries as automation allows compliance.
Coin Middle referred to as on the U.S. Securities and Alternate Fee (SEC) to prioritize formal rulemaking over particular person cures and reevaluate the position of intermediaries in blockchain-based monetary techniques.
In a letter to Chairman Paul Atkins and Commissioner Hester Peirce dated March 5, 2026, the group outlined proposals aimed toward growing regulatory readability and aligning oversight with the construction of open blockchain networks.
The letter argues that particular person no-action letters and waiver reduction might present restricted readability however might result in inconsistent outcomes throughout initiatives. Coin Middle mentioned such an strategy dangers fragmentation and unequal therapy, particularly when entry to deregulation depends on sources and incentives accessible to explicit events.
As a substitute, the group really useful a broader rulemaking strategy, describing it as extra basic and forward-looking. Based on the letter, decentralized blockchain networks might not have an identifiable sponsor to hunt regulatory approval, and entry to sure techniques could also be restricted if rulemaking shouldn’t be prioritized. CoinCenter additionally famous {that a} formal secure harbor established by way of a public course of might enhance the readability, legitimacy, and sturdiness of cryptocurrency regulation.
Blockchain system and switch agent operate
Moreover, CoinCenter raised questions concerning the continued want for switch brokers in blockchain-based markets. The letter means that if tokenized securities are recorded on a blockchain, the issuer could also be liable for record-keeping. Notice that this construction displays how stablecoin issuers at the moment handle their data.
The group additionally addressed the position of privateness in blockchain techniques. Pointing to privacy-preserving applied sciences that permit selective entry to knowledge, it mentioned transparency shouldn’t be assumed to be a requirement for compliance. These techniques can embody options reminiscent of credential verification and key visibility, permitting issuers to keep up oversight whereas permitting entry to regulators if wanted.
Extra broadly, CoinCenter referred to as on the SEC to keep away from what it referred to as pointless reintermediation. The letter argues that many features historically carried out by brokers, exchanges, and switch brokers can now be carried out by way of automated code and user-controlled ID instruments. It added that compliance situations reminiscent of investor eligibility and commerce execution requirements will be constructed instantly into tokenized merchandise.
The group additional mentioned that regulatory frameworks ought to allocate accountability to the “least value avoiders”, which issuers typically establish as this particular person. Whereas issuers can nonetheless delegate features to third-party suppliers, CoinCenter really useful that such preparations stay voluntary slightly than obligatory.
Associated: SEC clarifies crypto guidelines, says most belongings are usually not securities
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