US SEC Proposes Regulatory Standards for Virtual Asset Vaults and Token Securities

A proposal has been submitted to the U.S. Securities and Exchange Commission (SEC) to clarify regulatory standards for virtual asset vaults and token securities. According to a comment letter from Forward Industries submitted to the SEC's virtual asset task force (TF) on the 10th, a three-tier regulatory approach for digital asset vaults has been proposed. A vault is a service that aggregates multiple users' digital assets and automatically allocates them for staking or lending through smart contracts, and it is argued that regulation should be based on the extent of the operator's involvement in investment decisions. Vaults with minimal operator involvement should face minimal regulation, while those where the operator determines investment strategies should be subject to stricter regulations. Additionally, it was suggested that since vaults can manage both securities and commodities, the SEC and the Commodity Futures Trading Commission (CFTC) should jointly establish regulatory standards. On the same day, Jin Deyev, CEO of Stobox Technology, also submitted a comment to the SEC advocating for the strengthening of the record-keeping system for token securities. He pointed out that while the blockchain allows for the verification of token securities holdings, it is difficult to confirm the basis for issuance, and he proposed that the basis for issuance, source of information, and date of creation should be recorded. These documents are private comment letters and not finalized regulatory proposals from the SEC.

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