This week, after the Boston Security Token Exchange (BSTX) announced plans to withdraw and resubmit its proposed rulebook, the STO market has come one step closer to a major milestone. In April, the Securities and Exchange Commission (SEC) requested more clarity from the company regarding its operations. The SEC got its data today in the form of the amended rulebook.
What is important is that the news shows the tenacity behind the BSTX project. Additionally, it opens the door to future legal precedents as the court progresses. BSTX developers now believe they have provided the SEC with the in-depth understanding necessary for regulators to approve the exchange of safety tokens.
Examination Need-Exchange of security tokens in Boston
The aim of the resubmission is to give regulators more data and time, according to company executives. In particular, the SEC continues to assess how a regulated exchange of national security tokens could impact the market. In addition, the SEC needs to modify certain requirements deriving from paper-based settlements that are not required when using blockchain technology.
BSTX CEO Lisa Fall said in a recent interview that her firm was extremely “thankful to the SEC staff” for their continued review of BSTX. She also mentioned the importance of the decision to withdraw and resubmit the request. This go-around contains more details about the platform’s internal workings and processes. Fall explained that this achievement would represent a major step forward for the whole safety token sector. This would open up the sector specifically to traditional investment firms.
Fall touched upon BSTX’s ultimate goal of becoming the US’s first nationally regulated safety token. She then stated that she hoped regulators would use the current situation to accelerate the updated rulebook review. Thanks to the virtual shutdown of the global economy by Coronavirus, regulators have a rare moment of clarification to review all data in a timely manner.
BSTX – Crucial to flexibility
Since its original filing in 2019, BSTX has already introduced several modifications to the application. In one instance in February, the company modified the application’s market maker and standard listing sections. This move was intended to bring BSTX into line with other domestic exchanges like the New York Stock Exchange. Now developers appear to be taking whatever steps are needed to get BSTX to the masses.
Boston Security Token Exchange (BSTX)
Importantly, BSTX is a joint venture between BOX Digital Markets LLC and a subsidiary of Overstock, tZERO. BOX, for its part, provides strategic direction and regulatory advice. These tasks include interacting with federal regulators, and maintaining mechanisms for compliance in place.
The platform’s technical aspects will come under the responsibility of tZERO. As such, tZERO developers are responsible for all the blockchain protocols, smart contract programming, and protocols for implementation and settlement. TZERO is notably one of the most recognized names in the STO industry.
Safety tokens exchange in Boston – You see them coming
This new SEC application may be the one that gets approval from BSTX. If not, you can bet the company aims to bring this creative platform to the market whatever changes the SEC needs. For now, that crucial ruling awaits the entire cryptocommunity.