Richard Baker

🇬🇧🇺🇸 SEC’s Hester Peirce Proposes UK–US Cross-Border Tokenization Sandbox — But No Invite for EU. from Darshana Manikkuwadura (Dash)⚡️🇬🇧 🇱🇰⚡️ Last week, SEC Commissioner Hester Peirce doubled down on her call for a cross-border tokenization sandbox — and this time, she wasn’t pulling punches. Speaking on the future of digital securities, Peirce outlined a framework for a regulatory sandbox between the US and UK to trial tokenized financial instruments in a way that promotes innovation without political baggage. Her message was clear: “Focus on finance, not politics.” This isn’t the first time Peirce has floated the idea. Over a year ago, she responded to the UK’s Digital Securities Sandbox (DSS) consultation with cautious optimism. But now, the vision is firmer: ✅ Bilateral collaboration with like-minded markets ✅ Market-first incentives ✅ Clarity, flexibility, and actual utility for participating firms The sandbox isn’t meant to be just another pilot project where innovation goes to die. Peirce emphasized that real-world applications need room to scale, pivot, and capitalize on user demand in real time — not years after regulators finally catch up. 🔑 “If a regulator were not able to react quickly, the company would have to turn new users away.” That one line speaks volumes. Unlike many policymakers who view sandboxes as safe experimentation zones with no commercial urgency, Peirce gets it: innovation isn't something you run in a lab and shelf for later. Firms building in blockchain and tokenized finance are already live, user-facing, and solving real inefficiencies. They don’t need more theory. They need interoperable, market-driven, legally sound frameworks — now. And here’s where it gets political. While she left room for other like-minded jurisdictions to join the sandbox, she explicitly called out the EU’s approach — particularly its “double materiality” doctrine that injects sustainability goals into financial reporting. Peirce pushed back on the export of EU sustainability disclosure rules, drawing a sharp regulatory divide. Her final words were blunt: “Market integration suffers when two jurisdictions diverge on core matters such as the purpose of financial statements and other securities disclosures.” 💡 Translation? If financial systems can't agree on why they regulate or what outcomes they prioritize (capital formation, efficiency, investor protection), cross-border experimentation will remain fractured. As someone building at the intersection of AI and blockchain, I see this moment as pivotal. If done right, a UK–US sandbox could offer: • Legal clarity for asset tokenization • Regulatory flexibility to scale responsibly • A blueprint for future financial infrastructure Let’s hope this doesn’t stay a speech. The builders are ready. The capital is waiting. And the tech? It’s already live. #Tokenization #BlockchainRegulation #darshanamanikkuwadura Darshana Manikkuwadura (Dash)⚡️🇬🇧 🇱🇰⚡️

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