Blockchain Startup Templum Asks SEC For Clarity On Post-Trade Activities
Blockchain Startup Templum Asks US SEC For Clarity On Post-Trade Activities
Templum, a fully regulated token trader based in the United States has recently asked for the U. S. Securities and Exchange Commission (SEC) to clarify how the regulations of the country would define digital assets that are tracked or tokenized.
To know more about this, the company has filed a rulemaking petition with the SEC so that the agency explains to it how it will work. In fact, the lack of certainty about regulation is one of the major problems that the U. S. is facing while regulating cryptos. Many companies simply do not know what to do.
According to Templum’s CEO, Vince Molinari, a framework does not really exist in the country right now and this is the main problem that the company, as well as many other similar ones, are facing now. The petition was made so that the SEC can create some structure for the market because 2018 is almost finished and the framework was not implemented.
The petition asks the SEC to provide more guidance for post-trade activities in the digital space. For instance, the petition requires an explanation about how a blockchain company can basically act as a clearing company and whether and when to register as such. Also, it asks whether a company needs to register as a transfer agent to issue digital tokens.
Finally, the petitions end by asking the people at the SEC to modernize the existing custody and customer protection laws. Only with further clarification and with a wide modernization of how the financial system works things can work properly, in the vision of the CEO of Templum.
Molinari has affirmed that this is part of the company’s advocacy work for the blockchain space and that the changes would benefit the whole ecosystem, not only the company. He believes that a lot more people will start to use tokens in 2019, so the legislation needs to be modernized.
According to the CEO, the company fully recognizes that it is not creating a properly new industry but that it is focusing more on inserting what is new or unclear in this industry into the existing framework so that the companies can make business properly.