How did chain links affect the future of blockchain?

On May 15, the SEC released new guidelines that could encourage institutions to invest in digital assets. This change details existing securities laws that apply to broker-dealers and transfer agents in the crypto sector. These changes reflect the shift towards greater crypto adoption within the traditional financial industry, primarily for compliance and record-keeping.

The SEC’s new FAQ explains important questions about how current regulations treat cryptocurrencies. Hester Peirce said the guidance is “incremental” and a more thorough update will be released later. She said:

Nevertheless, given the market uncertainty regarding applying our rules to crypto in general, we are pleased that our staff have issued these useful FAQs.

ChainLink has recognized it as a major development in the industry. The company said the update addresses past issues it encountered when using public blockchain for compliance. The new guidelines designed by the SEC will be useful for those interested in using blockchain.

ChainLink has helped develop new guidance from behind the scenes. In March, members of ChainLink Labs attended a meeting with the SEC’s Crypto Task Force. The session proved how smart contracts and privacy technology comply with securities regulations. The contents of this guide appear to have contributed to the inclusion of terms such as “Unified Golden Record” and “Smart Contract-Driven Compliance” in the updated SEC guidance document.

SEC makes digital asset rules easy for broker dealers

The new SEC guidelines inform financial institutions how to handle crypto assets such as Bitcoin and Ethereum. According to this, broker-dealers holding non-security assets are not required to comply with the safety requirements listed in Rule 15C3-3. This makes it easier for agencies to address digital assets and understand how they are managed by existing custody standards.

The agency also warned that digital assets that are not classified as securities lack SIPA protection. This means that customers may face additional risks when holding non-security cryptography in registered companies.

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According to new guidelines, transfer agents will be given permission to use distributed ledger technology (DLT) in their securities records. They must comply with rules and regulations, and their records must be safe and accessible. As a result, governments can use blockchain to verify and record important information for the first time.

This development makes ChainLink well positioned in the market. The project is working closely with regulators to support federal government policy decisions. ChainLink could soon be the industry leader as public blockchains are approved by the SEC for use in securities infrastructure.