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SEC Delays its Approval for Boston Security Token Exchange proposed by tZERO and Box Digital Markets

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Jayashree Ingle Follow


Apr, 03 2020

Apr, 03 2020

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By releasing a letter on April 1, The United Security and Exchange Commission has revealed that it seeks more time to get more feedback before approving the launch of the Boston Security Token Exchange (BSTX).

The order has been released owing to the rule change to BSTX’s original filing.

The proposed BSTX Exchange 

Boston Security Token Exchange (BSTX) has jointly been proposed by Box Digital Markets and Overstock’s Blockchain subsidiary tZERO. It will be launched as a platform for regulated security tokens.

States Securities and Exchange Commission is seeking more feedback and more time before it decides whether to approve the launch of the Boston Security Token Exchange (BSTX).

The project seeks operations using:

“A fully automated price-time execution system to list and trade NMS stocks that meets BSTX listing standards and for which ancillary records of ownership reflecting certain reflecting the certain end of the day security token balances as reported by market participants would be created and maintained using distributed ledger technology.”

The SEC also has mentioned two feedbacks which it received earlier this year on the BSTX proposal and the subsequent alterations applied by Box and tZERO.

The comments letters have pointed out their concern that the proposed platform could represent a significant change for equity markets. One of the comment letters mentioned the 85% drop in the value of the token in the last two years after its issuance and asked revaluation of the proposal. One of the feedback also has alleged that the proposal has insufficient details about its infrastructure and technological alliance with the existing equities market infrastructure.

To revive these concerns, the SEC has asked for more time to evaluate. It also wants to check whether the proposal aligns with the Securities Act of 1934.

The contributors have been given three more weeks to submit their concerns and the SEC will take two more weeks to respond to the comments.

#SEC #BSTX #tZERO #SecuritiesAct1934    

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Jayashree Ingle

CBW - External Analyst


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