SEC's Crypto Task Force Explores Tokenized Securities on Public Blockchains

The US Securities and Exchange Commission’s (SEC) Crypto Task Force has intensified its studies on how public blockchain technology can support the issuance and trading of tokenized securities. The group held separate meetings with Nasdaq, Plume Network, and Etherealize to discuss the potential of issuing and trading securities on public blockchains. All three meetings resulted in the suggestion of the concept of a regulatory sandbox, which would allow issuers to self-certify classifications while meeting light-touch disclosure standards.

Nasdaq executives urged the Task Force to let tokenized shares, bonds, and exchange-traded funds (ETFs) remain subject to existing registration rules. They also asked for authorization for a new “ATS-Digital” venue where firms can list digital asset investment contracts alongside commodity-style tokens. Additionally, Nasdaq proposed the creation of a joint safe harbor with the Commodity Futures Trading Commission (CFTC) for assets whose status is uncertain. This idea would allow issuers to self-certify classifications while meeting light-touch disclosure standards. Nasdaq also emphasized that tokenization should not weaken national market system protections and that any move toward atomic settlement must balance liquidity and operational risk.

Plume Network, which is based on Arbitrum, told the SEC that permissionless blockchains are best suited for real-world asset tokenization. They proposed a regulatory sandbox covering the 1933 Securities and 1934 Exchange Acts. The company’s agenda calls for safe harbor relief that explicitly factors in decentralized finance mechanics and “credible neutrality,” plus tools to calibrate rules across primary offerings and on-chain secondary trading. Plume also sought guidance on tokenizing US and non-US equities subject to the Regulation National Market System and other regimes.

Etherealize and policy firm MetaLeX focused on back-office infrastructure, telling the Task Force that legacy transfer agent regulations force issuers to keep parallel off-chain ledgers and negate blockchain efficiencies. A transfer agent is a financial institution acting as a record-keeper for a company’s shareholders. Their proposal asks the SEC to recognize suitably secure blockchains as authoritative share registers, exempt issuers using decentralized tokenization protocols from transfer agent registration, and create a fast lane for agents specializing in tokenized securities. They also urged a pilot to test smart contract equivalents for corporate actions such as dividend distribution and shareholder voting.

Across the meetings, industry participants pressed for clear taxonomy, modular rulebooks, and phased pilots. Furthermore, each called for technology-specific tweaks, but none challenged the SEC’s core investor-protection mandate. The Task Force staff took the materials under advisement, indicating that future rule proposals could weigh sandbox models, dedicated trading venues, and updated transfer agent obligations.