The Boston Security Token Exchange (BSTX) announced today its decision to withdraw and resubmit its proposed rulebook to the Securities and Exchange Commission. The decision was made to give more time to analyze the impact of a nationally regulated exchange for digital security tokens.
In an interview with Lisa Fall, CEO of BSTX, she said that the decision to resubmit the application was necessary to enable a thorough review. While crypto and blockchain purists may see a regulated exchange as opposed to digital currency ideals, it does represent positive momentum to the mass-public adoption of digital token trading. If successful, a regulated token exchange could open new institutional and retail trading opportunities.
There has been history. BSTX did modify the original application in late February to accommodate market maker concerns and listing standards, making the application closer to requirements held by the New York Stock Exchange. Last April, the SEC asked for more clarification. At the end of the day, the resubmission announced today seems another step closer to a detailed understanding of how security tokens work. This innovation has the potential to set a new precedent in the blockchain world, and therefore, it is not surprising this might take multiple iterations.
“We are grateful to the staff of the SEC for their continued review of the proposal,” said Lisa J. Fall, CEO of BSTX. “Our mission to become the first regulated security token exchange is not something we take lightly, and this refiling allows the SEC more time in this current, unprecedented climate to review our submission. We have already seen substantial community support and interest in what we’re building, and we look forward to continuing our work with the SEC to bring the industry the first-of-its-kind exchange.”
BSTX is a joint-venture between BOX and tZERO. tZERO will also be the technology provider for BSTX.
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