Project Open Submits Proposal to SEC for Blockchain-Based Equity Trading
Project Open is a new SEC pilot proposal aiming to modernize the US equity market by using blockchain technology, specifically on public networks like Solana. Key points include:
- Proposed by the Solana Policy Institute, Superstate, and Orca.
- Seeks exemptive relief for issuing, registering, and trading equity securities directly on blockchains.
- Submits a legal framework outlining registration pathways, KYC onboarding, smart contract-based settlements, and investor education modules.
- Investors would hold “Token Shares” in whitelisted wallets after KYC compliance.
- A registered transfer agent would utilize blockchain for tracking shares without custodians.
- Proposes trading using smart contracts rather than traditional exchanges, navigating existing regulations or seeking exemptions.
- Timely proposal amid changes in SEC leadership signaling openness to blockchain integration.
- Goals include faster settlement times, reduced fees, and increased transparency in financial markets.
If approved, Project Open could significantly align traditional finance with decentralized finance, reshaping investment dynamics in the US.