The U.S. Securities and Exchange Commission (SEC) is exploring a ‘regulatory sandbox’ to address the regulatory framework for public blockchain securities tokenization, according to recent discussions with industry players like Nasdaq, Plume Network, and Etherealize. These conversations focused on establishing a pilot program to test different approaches. Nasdaq proposed creating a new trading venue called ‘ATS-Digital,’ where digital asset contracts and commodity tokens could be listed. Plume Network, working on Arbitrum, advocated for aligning decentralized finance clauses with existing securities laws. Meanwhile, Etherealize called for modifications to transfer agent rules to recognize blockchain as a legitimate shareholder registration system. Representatives emphasized the importance of clear classification of assets, flexible regulations, and phased testing while ensuring investor protection under SEC principles. The task force will evaluate the potential of regulatory sandboxes, dedicated trading venues, and proposed rule changes before moving forward.