Solana Policy Institute Urges SEC to Tighten Blockchain Test for Tokenized Stocks

Solana Policy Institute urged the SEC on Oct. 22 to judge blockchains for tokenized stock venues by who controls validation, censorship and rule changes, sharpening a dispute over eligible network infrastructure. The institute's comment focuses on control over transaction validation, censorship and changes to network rules. Hedera argued in an Oct. 9 filing that public networks with permissioned validators should qualify. The Securities Industry and Financial Markets Association asked the SEC on Oct. 19 to clarify which networks meet the standard. The SEC's five-year exemption for tokenized securities venues lets qualifying venues facilitate trading in tokenized U.S. stocks without registering as traditional exchanges, subject to conditions. One condition requires smart contracts to run on a public, permissionless distributed ledger.

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