Fox reporter Eleanor Terrett tweeted that Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC), announced a proposal for the joint establishment of a digital securities sandbox by the United States and the United Kingdom. This sandbox is a special safe haven where companies in both jurisdictions can safely experiment with blockchain technology for securities trading without worrying about regulatory warnings.
Peirce stated that a cross-border sandbox may be more transformative than a purely domestic sandbox. U.S. companies will be able to conduct a limited amount of business in the U.S. and trade securities using blockchain technology without fearing regulatory scrutiny. The time spent in the sandbox will be limited to a maximum of 2 years and may be extended. FinHub will assist companies in understanding and adapting to the sandbox environment. Companies can choose some of their own regulatory rules, but they must adhere to certain government guidance principles to protect investors. If the time in the sandbox is successful, companies may qualify for graduation and continue their activities under special permission from regulatory authorities.