AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Ethereum News Today: SEC Engages Blockchain Developers in Shift from Enforcement to Collaboration
Coin WorldMonday, Jul 21, 2025 9:26 am ET
2min read
Aime SummaryThe US Securities and Exchange Commission (SEC) has taken a significant step in its approach to blockchain technology by engaging directly with blockchain developers. This shift marks a departure from its traditional enforcement-first strategy, as the SEC's Crypto Task Force held a private meeting with several Ethereum-aligned organizations. The discussion focused on how blockchain standards like ERC-3643 and Chainlink’s Automated Compliance Engine (ACE) could be utilized to bring regulated capital markets onto the blockchain.
The meeting included representatives from the ERC-3643 Association,
Labs, the Enterprise Alliance, and the Linux Foundation’s Decentralised Trust initiative. The primary topics of discussion were ERC-3643, an Ethereum-based token standard designed for regulated markets with built-in identity and access control features, and Chainlink’s ACE, a framework for automating compliance processes for tokenized assets. ERC-3643 is unique in its architecture, which includes programmable compliance features essential for financial instruments like real-world assets and tokenized securities. These features ensure identity verification, access restrictions, and jurisdictional compliance, which are critical for adhering to US securities laws. Chainlink’s ACE complements ERC-3643 by enabling smart contracts to automatically run compliance checks, ensuring that transactions and asset transfers meet legal requirements. This makes it easier for and issuers to deploy tokenized assets on public blockchains without violating regulations.While the SEC did not make any binding policy announcements during the meeting, the invitation and engagement signal a notable change in attitude. This interaction follows months of behind-the-scenes discussions between blockchain stakeholders and US regulators. It is the first time in years that the SEC has proactively invited such groups to present tools designed for compliant tokenization. Observers noted that this meeting marks a break from the agency’s past posture, which was primarily focused on enforcement. The SEC has previously shown skepticism toward decentralized platforms operating outside the existing regulatory perimeter. The move to directly examine technologies like ERC-3643 and Chainlink ACE indicates an interest in developing a structured framework for bringing traditional assets onto blockchains using open standards.
The meeting follows earlier comments from SEC Chair Paul Atkins, who confirmed that the agency is exploring an “innovation exemption” that could allow tokenized securities to be traded under new models. While Atkins did not reference the meeting directly, he reiterated the SEC’s forward-looking position, saying, “If it can be tokenized, it will be tokenized.” The concept of an innovation exemption would allow blockchain projects and financial institutions to pilot tokenized securities under specific guidelines, potentially bypassing some of the current regulatory hurdles. This could pave the way for broader adoption of blockchain in areas such as bond issuance, equity trading, and securitized loans. Such exemptions, if implemented, would likely rely on the kind of programmable compliance features found in ERC-3643 and ACE. The combination of identity-verified token issuance and smart contract-based legal enforcement could give regulators more confidence in allowing digital assets to operate within existing financial systems.
Although no formal commitment has been made, the SEC’s recent actions suggest that it is more open than before to engaging with the crypto industry on technical and regulatory alignment. For Ethereum developers, legal experts, and financial institutions seeking to bridge on-chain and off-chain markets, the meeting is a signal that their work may soon find regulatory recognition in the US. As tokenization becomes a growing focus globally, with jurisdictions advancing frameworks for digital assets, the SEC’s willingness to explore technical standards marks a potential inflection point in US crypto policy.
Sign up for free to continue reading
Unlimited access to AInvest.com and the AInvest app
Follow and interact with analysts and investors
Receive subscriber-only content and newsletters
or
By continuing, I agree to the
Market Data Terms of Service and Privacy Statement
Already have an account?
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
Comments
No comments yet