The New York Stock Exchange's tokenization plan sparks a new round of debates on privacy and compliance
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According to a report by Bijie Network: The New York Stock Exchange's exploration of blockchain-based securities tokenization is forcing regulators to undertake significant reconsiderations, as the inherent transparency of distributed ledgers conflicts with privacy laws in the United States and Europe. StarkWare's Katherine Kirkpatrick pointed out that the challenge lies in balancing financial regulation with minimizing the leakage of sensitive data. She suggested that privacy technologies such as viewing keys can keep transaction data private in public settings, while still allowing access for regulators when necessary. This shift makes privacy a core economic and design constraint in tokenized markets, which must maintain enough transparency to satisfy oversight by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), while also protecting trading strategies and client information.
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