US Securities and Exchange Commission (SEC) Commissioner Esther Pierce has proposed that the US and UK create a common regulatory sandbox for settlements with tokenized securities.

Hester Peirce's proposal implies that sandbox participants will be able to conduct their activities on equal terms in both countries, and the US and UK will enter into an information exchange agreement. Participating firms will be able to serve real clients while eliminating possible shortcomings of their projects. The initiative will determine whether distributed ledger technology (DLT) can facilitate the issuance, trading and settlement of digital securities without any negative consequences.

Any organization that is not blacklisted by the American and British governments will be able to participate in the sandbox. The SEC also plans to conduct a public survey to develop a list of eligible activities for participants. Companies will be allowed to participate in the program for two years. Organizations wishing to participate in the regulatory sandbox will need to submit applications to the SEC's Innovation and Financial Technology Strategy Center (FinHub). This division of the SEC will monitor companies' activities and compliance with anti-fraud rules.

Pearce noted that start-ups that entered the UK's Financial Conduct Authority (FCA) sandbox between 2016 and 2019 raised more capital and survived longer than other firms. Pierce's proposal would therefore be able to expand the UK's regulatory sandbox, which could also accept applications from US companies. Pierce emphasized that the idea of ​​​​creating a single regulatory field came to her against the backdrop of sharp criticism of the SEC from cryptocurrency companies who accuse the agency of using unnecessary enforcement measures against the industry. Pierce emphasized that her proposal is a step towards crypto companies that want to cooperate with the United States.

Last year, the SEC Commissioner urged American crypto companies not to leave the United States, encouraging that the authorities could find a way to clarify the regulation of cryptocurrencies. Pearce also cited the MiCA as an example, calling it a good model for industry oversight.