Kingdom

Bank

United

2024

SEC Commissioner Hester Peirce proposed a cross-border digital securities sandbox in response to a joint consultation by the Bank of England and the Financial Conduct Authority (FCA).
The proposal aims to foster innovation and enhance regulatory oversight by allowing firms in both the United Kingdom and the United States to experiment with distributed ledger technology (<a href="https://crypto.news/tag/dlt/" data-type="link" data-id="https://crypto.news/tag/dlt/" rel="noopener noreferrer nofollow">DLT</a>) under a unified regulatory framework.
“This joint proposal reflects a commendable commitment to incorporating innovation into the financial system,” Peirce stated in the <a href="https://www.sec.gov/news/statement/peirce-boe-fca-comment-05292024" data-type="link" data-id="https://www.sec.gov/news/statement/peirce-boe-fca-comment-05292024" target="_blank" rel="noopener noreferrer nofollow">response</a>.
She advocated for including US-domiciled firms in the <a href="https://crypto.news/uk-publishes-fca-regulations-for-digital-securities-sandbox/" data-type="link" data-id="https://crypto.news/uk-publishes-fca-regulations-for-digital-securities-sandbox/" rel="noopener noreferrer nofollow">UK’s digital securities sandbox</a> (DSS), suggesting that expanded eligibility would promote cross-border innovation.
Peirce emphasized the benefits of a cross-border sandbox, which allows firms to operate under the same regulatory conditions in both jurisdictions. She also mentioned the success of the FCA’s sandbox, where firms have raised more capital and refined their business models through real-world testing.
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 🚨NEW: <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@SECGov</a> Commissioner <a href="https://twitter.com/HesterPeirce?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@HesterPeirce</a> has announced a proposal for a joint US/UK “digital securities sandbox” — a special safe harbor where companies in both jurisdictions can safely experiment using blockchain technology for trading securities without fear of regulatory…— Eleanor Terrett (@EleanorTerrett) <a href="https://twitter.com/EleanorTerrett/status/1796190525352968661?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">May 30, 2024</a>
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“Sandboxes have proven effective in facilitating innovation in highly regulated sectors,” Peirce noted.
She also pointed out that regulators gain valuable insights into emerging technologies, with 85 percent of sandbox regulators reporting that sandboxes help assess the appropriateness of legal or <a href="https://crypto.news/tag/crypto-regulation/" data-type="link" data-id="https://crypto.news/tag/crypto-regulation/" rel="noopener noreferrer nofollow">regulatory frameworks</a>.
Peirce concluded by stressing the transformative potential of a cross-border <a href="https://crypto.news/tag/sandbox/" data-type="link" data-id="https://crypto.news/tag/sandbox/" rel="noopener noreferrer nofollow">sandbox</a>, which could enhance market transparency, enable asset fractionalization, and reduce costs.
“This consultation offers a timely opportunity to discuss greater cross-border collaboration in facilitating innovation,” she said.
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Hester Peirce proposes for cross-border digital securities sandbox

crypto.news

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