Hello Magicians! I’m excited to share our work on regulated security tokens.
Abstract
This EIP introduces a token standard for securities that require regulatory compliance under SEC regulations (Reg CF, Reg D, Reg A+). The standard enforces Registered Transfer Agent (RTA) exclusive control over all token operations, implementing a request/review/execute workflow that ensures compliance checks before any transfers occur.
Motivation
Current token standards like ERC-20 were designed for utility tokens and lack the necessary controls for regulated securities. Direct peer-to-peer transfers bypass compliance requirements, creating regulatory risks. Security tokens need enforced KYC/AML checks, transfer restrictions, recovery mechanisms, and complete audit trails.
This standard is based on StartEngine’s operational experience with $1B+ in compliant security token offerings, addressing real-world requirements from 5+ years of production usage.
Specification
Check out the full specification on GitHub:
ERC Draft: https://github.com/ethereum/ERCs/pull/1335
The complete reference implementation can be found here.
Key Features
- Transfer request system with RTA approval workflow
- Multi-sig security through RTAProxy pattern
- Court order execution and lost wallet recovery
- Configurable fee management
- Account freezing for compliance
Would love to see an insightful discussion rolling!
Links