SEC considers Ethereum ERC-3643 token standard in tokenized securities issuance

The US Securities and Exchange Commission (SEC) hosted a meeting with several crypto industry voices last Thursday to discuss ERC-3643, a proposed Ethereum token standard supporting the compliant issuance and trading of tokenized securities. 

According to an update provided by those who were present on X, the closed-door session included representatives from Chainlink Labs, the ERC-3643 Association, the Enterprise Ethereum Alliance, Etherealize, and the Law Firm Decentralized. 

Together with the SEC Crypto Task Force, they examined how blockchain token standard ERC-3643 could address regulatory concerns on identity, control, and compliance in the digital asset industry.

Chainlink and ERC-3643 unified in compliance vision

Chainlink presented ERC-3643 to the SEC, proposing it as one standard that is compliant for capital markets using Ethereum’s blockchain. Spearheaded by the ERC-3643 Association, the standard uses built-in mechanisms to enforce regulatory requirements within tokenized securities and real-world asset (RWA) environments.

A historic moment for Ethereum.

Together with @erc3643, @chainlink, @lfdecentralized , @Etherealize_io we joined the SEC Crypto Task Force to educate about the importance of standards.

Ethereum doesn’t spend billions in marketing. We’re the standard builders. We’re the tech… pic.twitter.com/hRaVz7a1fX

— Redwan (@RedoudouM) July 17, 2025

During the meeting, representatives from Chainlink tabled their Automated Compliance Engine (ACE), a smart contract feature that integrates regulatory checks directly into token behavior. The technology automates identity verification, jurisdictional compliance, and transaction monitoring without impacting the decentralized nature of blockchain systems.

The proposals presented during the meeting addressed several functional tokenized security laws, including identity management, compliance automation, registry maintenance, and asset control. 

Dennis O’Connell, president of the ERC-3643 Association, told reporters that the SEC was surprisingly “very open to these concepts.” 

“There was a noticeable shift in tone,” he said, referring to the agency’s receptiveness to discussions on open standards and compliance of onchain securities.

O’Connell reiterated that the meeting was the product of months of quiet coordination between blockchain developers and SEC staff. 

“The task force was very welcoming, engaged, and motivated to bring the US into leadership,” O’Connell remarked. He added that the SEC under former chair Gary Gensler had previously overlooked the importance of open standards as used in other regulated industries like finance and telecommunications.

Atkins mulls exemptions after stablecoin law passed 

After the US House of Representatives passed the stablecoin-based GENIUS Act on Thursday, Bloomberg reported that SEC Chairman Paul Atkins spoke about the possibility of an “innovation exemption” from current regulations to encourage tokenization of assets. 

The White House Fact Sheet confirmed that the GENIUS Act was signed into law by President Donald Trump on the same day, who claimed it was going to “make America the UNDISPUTED Leader in Digital Assets.”

“This is American Brilliance at its best, and we are going to show the World how to WIN with Digital Assets like never before,” Trump wrote on Truth Social.

In a press event, Atkins told Bloomberg the SEC is in “mild talks” about executing regulatory exemptions to incentivize companies to experiment with blockchain-based securities.

“Staff is considering what other changes may be appropriate to incentivize tokenization,” Atkins said, citing the need to create space for tokenized equity platforms. 

New stablecoin law changes begin regulatory overhaul 

According to the assertions of the newly passed GENIUS Act, stablecoin issuers must be anti-money laundering compliant, monitor transactions, and keep dollar-for-dollar reserves in short-term Treasury instruments or similarly secure assets, overseen by state or federal regulators.

Some stablecoin providers already operate in the US, but they’ve done so in legal uncertainty for years. The new legislation formalizes the sector’s place within the financial system. Supporters claim the bill could unlock more efficient payment pipelines and improve crypto-backed financial services.

Citigroup analysts estimate the global stablecoin market, currently valued at $265 billion, could expand to $3.7 trillion by 2030 if regulatory clarity advances.

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