This bill establishes a regulatory framework for broker-dealers to handle tokenized securities and stablecoins on blockchain networks. It allows registered brokers and dealers to apply for approval as "approved brokers or dealers for qualified tokenized securities" by meeting specific custody, security, and disclosure requirements, including maintaining control of digital assets, assessing blockchain technology risks, and informing customers about investment risks. The Securities and Exchange Commission must issue rules within 12 months clarifying how existing custody rules apply to these digital assets and may update recordkeeping requirements to accommodate blockchain-based records. The bill also requires the SEC to study whether additional guidance is needed to support tokenized securities markets and report findings to Congress within one year. Existing broker-dealers already approved under the SEC's February 2021 statement on digital asset custody would be grandfathered in without needing to reapply, though this special provision expires once final SEC rules are issued.
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