The Boston Security Token Exchange (BSTX), a new facility of the Boston BOX Exchange, has received regulatory approval from the U.S. Securities and Exchange Commission (SEC) to operate as a blockchain-based stock exchange.
Launched jointly by BOX and Overstock’s blockchain arm tZERO, BSTX initially sought Approval for the launch of publicly traded registered security tokensHowever, SEC approval to operate as a national stock exchange allows BSTX to settle faster in traditional markets using blockchain technology. according to to the U.S. Securities and Exchange Commission,
“The committee noted that [BSTX] The exchange’s current proposal does not address the trading of digital tokens and such proposals, or any other additional use of blockchain technology. “
Although the SEC has previously Deny BSTX’s license to provide crypto-focused servicesthe latest approval allows the facility to use a proprietary market data feed, the BSTX market data blockchain.
Additionally, BSTX will leverage blockchain technology to help investors experience faster same-day (“T+0”) or next-day (“T+1”) trading times instead of the standard two business days (“T+ 2”) The settlement cycle of traditional markets.
In addition to the regulatory approval of the BSTX-based rule change proposal (SR-BOX-2021-06), the SEC has set four conditions for BOX to qualify for BSTX operations.
This requirement includes participation in all relevant national market system programs related to stock trading, securing a regulatory services agreement with FINRA, membership of the BSTX facility’s Intermarket Oversight Panel, and applicable governance structures.
Consistent with the aforementioned developments, the SEC is also reportedly reviewing some high-yield crypto lending products offered by Gemini, Celsius Network, and Voyager Digital.
As Cointelegraph reported, the U.S. Securities and Exchange Commission is conducting an investigation into considering the registration of crypto lending services as securities. Bloomberg’s report on the matter suggests that the SEC’s main concern lies in the high-yield offerings of crypto lending services.