On June 13, Jito Labs, joined by Blockworks, unveiled a proposal for the framework to the SEC. This framework aims to provide more transparency for token issuers and market makers. Just a day earlier, Solana Labs, Phantom, Superstate, Orca Creative, and several other law firms participated in an important meeting with the SEC. Their suggestions included “Project Open,” an experimental initiative to enable registered digital securities to be listed and traded on blockchains such as Solana. Both initiatives are critically important to rebuilding investor confidence and improving overall market integrity in the crypto trading ecosystem. Here’s how Jito’s MEV framework might help establish a new precedent for compliance in decentralized finance.
The framework presented by Jito Labs and Blockworks, a crypto research and media company, emphasized the importance of transparency in the digital asset market. Their proposals would provide more predictable rules for token issuers and market makers. This will in turn provide a more stable market and a clearer, more consistent playing field for investors.
Meanwhile, "Project Open" aims to allow equity securities to be issued and traded entirely on public blockchains such as Solana. According to SEC regulation, the Solana-backed coalition envisioned the pilot program to be an 18-month scheme. This coalition’s Big Ideas Challenge would create a regulatory sandbox, where experimentation, innovation and creativity could flourish under regulatory guardrails. During the pilot program’s run, anyone will be able to publicly comment on the program.
The SEC’s willingness to engage meaningfully with these proposals is an indication that the interest in providing clear regulatory pathways for digital assets is growing. By creating a regulatory sandbox, the SEC can monitor and assess the impact of blockchain-based trading on market stability and investor protection. Project Open is the latest of these efforts to combine traditional financial products with nascent blockchain technology.
Jito’s MEV system might just be the key to decentralized but compliant finance. Jito’s revolution. The framework and the pilot program are clear examples of a healthy relationship between industry actors and regulators. As a team, they address the new reality of a growing complex digital asset ecosystem.
