Chainlink Joins SEC Crypto Task Force to Drive Tokenized Asset

    By

    Triparna Baishnab

    Triparna Baishnab

    Chainlink Labs joins SEC Crypto Task Force to establish standards for tokenized asset trading. This move aims to enhance compliance.

    Chainlink Joins SEC Crypto Task Force to Drive Tokenized Asset

    Quick Take

    Summary is AI generated, newsroom reviewed.

    • SEC Collaboration: Chainlink Labs works with the SEC Crypto Task Force.

    • Automated Compliance: ACE enforces policy decisions and ensures cross-chain compliance.

    • Institutional Capital: The collaboration could unlock over $100 trillion in capital.

    • Regulatory Shift: The SEC aims to reduce fraud in tokenized markets.

    Chainlink Labs has lately become a part of the SEC cryptocurrency task force. The group seeks to establish guidelines to acceptable trading of tokenized assets. Other big players such as ERC3643Org and EntEthAlliance got into the task force as well. In combination, these organizations will assist in regulating blockchain. They aim at achieving compliance with issuing and trading assets in a form of tokens. This is following the move by the SEC to a more stringent crypto regulation in 2024. In 2024 SEC report, there were fine collections of size 2.6 billion in relation to crypto. It shows how critical the implementation of rules in the crypto field becomes.

    The Chainlink role in SEC Crypto Task Force is one of the important steps in the establishment of industry standards. These standards will make it so that, the trading of tokenized assets is secure, and compliant. The task force will also ensure that the crypto industry is safer to the users and investors. The action is coming after years of confusion as to how to regulate crypto. With the help of the SEC, Chainlink contributes to the creation of transparency in the tokenized markets.

    Automated Compliance Engine: A Game Changer for Tokenized Assets

    Automated Compliance Engine (ACE) is one of the most important solutions offered by Chainlink. ACE executes real time policy all over the blockchain platforms. The tool facilitates compliance with regulations in decentralized structure. ACE will allow the seamless addition of cross-chain infrastructure to Chainlink. It can facilitate the smooth trade of digital assets with a compliance requirement. In 2025, Chainlink is going to cooperate together with Apex Group and GLEIF to extend this goal. The two entrepreneurial ideas are designed to unlock 100 trillion of institutional capital together. The partnership will help in eradicating that divide between on-chain compliance and off-chain compliance.

    Ethereum, the leading blockchain protocol in the field of decentralized finance (DeFi), will be supported by the ACE system too. DeFiLlama data show that Ethereum has 65 percent of the value of locked DeFi. Real-time policy enforcement by ACE will be instrumental in driving up this development. The initiative heralds the termination of the saga of the blockchain being a place with no rules. In peer reviewed studies conducted by the Journal of Financial Regulation (2024), standardized compliance would lessen the extent of fraud by 30 percent.

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