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Solana Policy Institute Proposes On-Chain Trading Framework to SEC

The proposal aims to facilitate the trading of traditional assets on-chain while seeking regulatory exemptions for decentralized protocols, reflecting a shift in SEC's approach to crypto regulation.

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Summary

The Solana Policy Institute, alongside Phantom Wallet, Orca Exchange, and Superstate Protocol, has proposed a compliant tokenized securities framework to the SEC. This framework seeks to enable on-chain trading of traditional assets such as stocks and bonds while requesting regulatory exemptions for non-custodial decentralized protocols, aligning with the SEC's evolving stance on crypto regulation.

Terms & Concepts
  • on-chain trading: The process of executing trades directly on a blockchain, allowing for transparency and reduced reliance on traditional intermediaries.
  • decentralized protocols: Systems that operate without a central authority, enabling peer-to-peer transactions and interactions.
  • SEC: The U.S. Securities and Exchange Commission, a regulatory body overseeing securities markets.