BSTX\u2018s SEC approval does not involve crypto trading or any other form of use of blockchain technology.<\/p>\n\n\n\n
The Boston Security Token Exchange (BSTX), a new facility of the Boston-based BOX exchange, received regulatory approval<\/p>\n\n\n\n
from the United States Securities and Exchange Commission (SEC) to operate as a blockchain-based securities exchange. <\/p>\n\n\n\n
BSTX was launched jointly by BOX and Overstock\u2019s blockchain arm tZERO, originally seeking approval for launching publicly-traded <\/a><\/p>\n\n\n\n registered security tokens<\/a>. However, the SEC approval to operate as a national securities exchange allows BSTX to use blockchain <\/p>\n\n\n\n technology for faster settlements in traditional markets. According<\/a> to the SEC,<\/p>\n\n\n\n \u201cThe Commission notes that the [BSTX] Exchange\u2019s current proposal does not involve the trading of digital tokens and such a proposal, <\/p>\n\n\n\n or any other additional use of blockchain technology.\u201d<\/p>\n\n\n\n While the SEC has previously denied BSTX permission<\/a> to offer crypto-focused services, the latest approval allows the facility to use a <\/p>\n\n\n\n proprietary market data feed, BSTX Market Data Blockchain.<\/p>\n\n\n\n In addition, BSTX will also use blockchain technology to help investors experience faster transaction times on the same day (\u201cT+0\u201d) or the <\/p>\n\n\n\n next day (\u201cT+1\u201d), instead of the standard two business-day (\u201cT+2\u201d) settlement cycle sported by traditional markets.<\/p>\n\n\n\n Along with the regulatory approval based on BSTX\u2019s rule change proposals (SR-BOX-2021-06), the SEC placed four conditions for BOX in <\/p>\n\n\n\n line with BSTX\u2019s operations. <\/p>\n\n\n\n The requirement includes joining all relevant national market system plans related to equities trading, ensuring Regulatory Services Agreement <\/p>\n\n\n\n with FINRA, Intermarket Surveillance Group membership for the BSTX facility and an applicable governance structure.<\/p>\n\n\n\n Related: SEC reportedly probing crypto lending products by Gemini and Celsius<\/a><\/strong><\/p>\n\n\n\n In line with the above developments, the SEC is also reportedly reviewing some of the high-yield crypto lending products offered by Gemini, <\/p>\n\n\n\n Celsius Network and Voyager Digital.<\/p>\n\n\n\n As Cointelegraph reported, the SEC is conducting an inquiry into considering registering crypto lending services as securities. A Bloomberg report <\/p>\n\n\n\n on the matter suggests that the SEC\u2019s main concern lies with the high-yield offering by crypto lending services.<\/p>\n\n\n\n