SEC approves BSTX for blockchain settlements on traditional markets

SEC approves BSTX for blockchain settlements on traditional markets

The Boston Security Token Exchange, a new facility at the Boston-based BOX exchange has been approved by the United States Securities and Exchange Commission to be a blockchain-based securities trading platform.

BOX and Overstock’s Blockchain arm tZERO launched BSTX jointly. They initially sought approval to launch publicly-traded registered security tokens. BSTX can now use blockchain technology to speed up settlements in traditional markets thanks to the SEC approval. According to the SEC

“The Commission observes that the current proposal of the [BSTX] Exchange does not include the trading of digital tokens or such a proposal.

Although the SEC had previously denied BSTX permission for crypto-focused services to be offered, the SEC’s latest approval allows BSTX to use a proprietary market feed, BSTX Market Data blockchain.

BSTX will use blockchain technology to speed up transactions for investors. This is in addition to the traditional two-day settlement cycle of traditional markets.

The regulatory approval was based on BSTX’s rule change proposals (SRBOX-2021-06). Four conditions were also placed by the SEC for BOX to ensure that they are in compliance with BSTX’s operations.

This requirement requires that you join all national market systems plans that are relevant to equities trading. You also need to ensure Regulatory Services Agreement with FINRA and Intermarket Surveillance Group Membership for the BSTX facility.

Related: SEC probes crypto lending products from Gemini and Celsius

The SEC is also reviewing high-yield crypto lending products offered to Gemini, Celsius Network, and Voyager Digital, in line with the above developments.

Cointelegraph reported that the SEC is investigating whether to register crypto lending services as securities. According to a Bloomberg report, the SEC is most concerned about high-yield crypto lending services.

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