A lot is going on over at the SEC to set up a new regulatory framework for cryptocurrency (for example, see this press release from last week) – and maybe you think as a public company junkie that it doesn’t effect you. But it does.
Liz Dunshee and Reid Hooper explain in this Cooley “CapitalXchange” blog – here’s a teaser to get your attention: “It’s still early days, but if tokenization delivers the improvements to the trading and custody of securities that it’s promising, it will modernize the public company experience by making trading and settlement of securities transactions more efficient. It will also create a more direct relationship between companies and their stockholders – and in addition to resolving annoying logistical issues that drain time and resources, this direct connection may unlock more reliable stockholder support for management teams and boards.
With so much potential, and because the SEC and other market participants are devoting significant attention to it, public companies may find it useful to understand the basics – even if adoption remains uncertain.”
Authored by
Broc Romanek