Big week for market structure. @tZERO has closely reviewed the bipartisan draft and proposed amendments. Our primary feedback to the Senate Banking Committee (via @DigitalChamber): Broker-dealers should be able to operate a full-service spot crypto business without redundant federal or state licensing. This aligns with Chairman Atkins’ vision for a true multi-asset platform; eliminating friction for regulated entities already equipped to handle these assets. On Tokenized Securities: Broadly, tokenized securities remain under SEC purview and traditional regulated infrastructure. This is @tZERO’s bread and butter. We’ve been building this foundation since day one and are now scaling it through our infrastructure as a service product for market participants. On DeFi: While the current draft has its hurdles, we see a path forward. tZERO is launching self-hosted wallets within our ecosystem to provide the optionality the market demands, bridging TradFi with the decentralized world. These wallets will be interoperable with DeFi protocols, within the parameters of incremental innovation. Because these wallets will be integrated under a regulated venue, it’s the right step forward for safe, institutional DeFi, promoting asset sovereignty and programmable finance, ensuring our users aren't locked out of the next wave of Web3. On Lynq (our partnership with @Arca & @Tassat): Lynq is not a stablecoin platform. Its utility token is a security, allowing us and our partners to continue offering a broker-dealer operated, interest-bearing settlement system. Nothing is perfect, but we support advancing market structure legislation. We are well-positioned to turn this legislation into a launchpad for the next generation of financial infrastructure. Onward. 🚀

The SEC's no-action letter to DTC, enabling a pilot for tokenizing securities entitlements, is a significant and welcomed step forward. tZERO has been a regulated leader in the tokenized securities market for years, pioneering the infrastructure necessary to achieve the core promise of tokenization: multi-asset interoperability, cross-border convergence, efficiency, and enhanced utility. We applaud DTC for recognizing these benefits and integrating greater mobility and programmability into centralized clearing. This move validates the foundational principles tZERO has championed since its inception—that the convergence of TradFi and DLT is inevitable. While the DTC approach is an important tool for retrofitting existing legacy assets, we continue to believe the future lies in the efficiency and liquidity unlocked by native digital securities. tZERO’s platform is uniquely designed for the direct issuance, trading, and settlement of digitally native securities—assets that exist on the blockchain from the moment of inception. As one of the two U.S. broker-dealers authorized to provide on-chain custody for tokenized securities, we will continue to advocate for alternative models, as welcomed by Commissioner Peirce in her accompanying statement, which empower market participants like tZERO to fully maximize the benefits of digitally native securities without introducing unnecessary layers of intermediation. We stand ready to collaborate with the DTC, other market participants, and regulators who are continuing to “innovate and experiment.”