The US Securities and Exchange Commission (SEC) has delayed its decision to approve or reject tZERO's proposal to launch a security token exchange.
The regulator has decided to put off its final decision in order to study user comments, the SEC said in a letter published on Wednesday.
The exchange, dubbed Boston Security Token Exchange (BSTX), was proposed by BOX Digital and tZERO with the aim of offering users a regulated trading platform for security tokens.
The final decision should have been announced yesterday, however, the SEC has extended the deadline due to legal and political issues. Specifically, the regulator first wants to find out whether the transactions that would be made on the exchange comply with the Securities Exchange Act of 1934 and whether the information it has provided so far is sufficient.
The SEC has now opened a 3-week comment period, while there will be an additional 2 weeks for users to respond to comments from others.
The proposal was filed in May 2019. Shortly afterwards, several companies expressed their opposition to the project, which has made the SEC extend the deadline to make a decision.
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