The U.S. Securities and Exchange Commission (SEC) is extending the deadline for considering the proposal of BOX Options Exchange to roll out its security token platform Boston Security Token Exchange (BSTX), according to Coindesk website.

In a letter published yesterday, the SEC said it seeks feedback on the proposed BSTX; a JV between BOX Digital and tZERO.

It is worth mentioning that BSTX aims to provide a regulated security token platform.

The market watchdog was expected to take a decision in this regard today, but it extended the timetable due to some legal and policy issues. The SEC aims to know if BSTX abides by the Securities Exchange Act of 1934 and if the information it has submitted is sufficient.

The regulator warned that if issues are not addressed adequately, the company’s proposal will be disapproved.

SEC sets date for submitting feedback

Third parties can submit their comments to the SEC within three week from the letter’s publication date, and will have other two weeks to send any reply to others’ feedback.

“The Commission asks that commenters address the sufficiency of the Exchange’s statements in support of the proposal, which are set forth in the Notice,72 in addition to any other comments they may wish to submit about the proposed rule change,” the document said.

Several firms expressed concerns. Nasdaq SVP Joan C. Conley said the proposal may increase weigh on competition as BOX will exclusively provide the underlying distributed ledger.

“The most salient characteristic – indeed, the only unique characteristic – of the security token is its use of blockchain technology,” Conley said. “To avail itself of blockchain technology, the purchaser must be a BSTX Participant. Non-BSTX Participants would be subject to ‘omnibus’ blockchain reporting.”

On 9 March, Cryptolydian reported that BOX is seeking the SEC permission to launch a security token platform in an attempt to calm regulatory concerns about the role of Ethereum in storing ownership records.

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