SEC Examines DLT for Securities Issuance and Settlement
- SEC studies DLT for securities operations.
- Emphasis on tailored disclosure guidance.
- No immediate market impact noticed.
Summarizing the SEC’s active review of Distributed Ledger Technology for issuing, trading, and settling securities, led by the Division of Corporation Finance as of April 2025.
The SEC’s study of Distributed Ledger Technology reflects the increasing interest in integrating innovative technologies into securities markets.
The SEC is actively reviewing the potential for Distributed Ledger Technology in securities operations. The review is spearheaded by the SEC’s Division of Corporation Finance, which released new guidance in April 2025 regarding crypto asset securities regulation. Commissioner Hester Peirce, who leads the Crypto Task Force, articulated support for updated disclosure guidance that aids companies developing blockchain-based platforms or integrating NFTs.
“The guidance may be helpful for companies that, for example, are developing a blockchain or integrating non-fungible tokens into video games and issuing debt or equity, registering the offering of an investment contract in connection with an initial coin offering, or issuing a crypto asset that is a security itself” — Hester Peirce, Commissioner, SEC.
While the SEC has not announced any rule changes, organizations affected include crypto token issuers, particularly those dealing with security-like contracts. Peirce notes that the SEC’s framework seeks to balance regulatory requirements while fostering innovation.
Any potential future moves by the SEC could significantly influence the structure and practices of crypto asset markets, especially within the Ethereum ecosystem that currently leads in DLT usage. The agency is monitoring use cases and regulations and engaging with industry participants through its Strategic Hub for Innovation and Financial Technology.
Historical context indicates past SEC interventions were limited to pilot programs, with broader policy implementation pending. Industry frustration persists over ambiguous disclosure rules, yet the newly issued guidelines aim to provide some clarity for figureheads integrating DLT and crypto-assets into securities operations.
