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BlackRock representatives met with the US Securities and Exchange Commission’s (SEC) Crypto Task Force connected May 9 to question guidance connected a scope of crypto regulatory issues, including tokenization, staking, and support frameworks for exchange-traded products (ETPs).
According to the meeting memo, BlackRock reviewed its integer plus offerings, including the iShares Bitcoin Trust (IBIT), the projected iShares Ethereum Trust (ETHA), and the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
The steadfast utilized the accidental to solicit input connected however existent and aboriginal products mightiness beryllium regulated nether national securities laws, peculiarly arsenic the integer plus marketplace matures.
The gathering included elder representatives from regulatory affairs, legal, integer assets, and ETF markets. Following a anterior league connected April 1, BlackRock continues straight engaging with the SEC connected crypto argumentation matters.
Last month, the steadfast discussed method elements of in-kind redemptions for crypto ETPs and shared a elaborate papers connected existing workflows nether the existent currency model.
Additionally, the steadfast outlined however those systems mightiness accommodate to enactment alternate models for crypto-based funds.
Product scope and regulatory ambitions
BlackRock besides outlined its views connected incorporating staking features into ETPs, aligning with different caller manufacture proposals reviewed by the SEC.
Staking has go a cardinal contented successful ongoing discussions implicit whether proof-of-stake plus vulnerability wrong ETPs tin beryllium designed to conscionable regulatory expectations without compromising liquidity oregon capitalist protections.
The gathering besides addressed tokenization, with BlackRock requesting feedback connected however tokenization efforts could beryllium structured wrong the existing securities framework. Tokenization is the process of representing accepted assets successful the blockchain arsenic integer tokens.
The steadfast besides suggested interim standards for crypto ETP issuers, asking the SEC to see codified guidance that mightiness use up of broader rulemaking.
BlackRock additionally discussed criteria nether Section 6(b) of the Exchange Act that could beryllium utilized to measure whether a crypto ETP satisfies regulatory thresholds for speech listing. These criteria see assessments of marketplace integrity and capitalist safeguards.
Lastly, the gathering with the SEC Crypto Task Force covered options connected crypto ETPs, with BlackRock raising method questions astir presumption and workout limits. The steadfast requested clarity connected however specified limits could beryllium structured regarding liquidity thresholds for the underlying crypto oregon ETP shares.
The station BlackRock meets SEC Crypto Task Force to sermon tokenization, ETP rules appeared archetypal connected CryptoSlate.
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