Chainlink Joins SEC Task Force to Advance Tokenized Asset Standards

• As part of its compliance-focused efforts, Chainlink introduced the Automated Compliance Engine (ACE), a modular framework that embeds regulatory policies directly into smart contracts.
• A key feature of ACE is the Cross-Chain Identity (CCID) framework, which allows users to reuse cryptographic proofs of KYC/AML credentials across platforms.

Chainlink Labs is now an official member of the U.S. Securities and Exchange Commission (SEC) Crypto Task Force in the effort to create industry-wide standards for the compliant creation and sale of tokenized assets.

The collaboration also involves such major players as ERC3643Org, Enterprise Ethereum Alliance, Etherealize, and LF Decentralized Trust.

Chainlink To Collaborate With SEC Crypto Task Force

The team is concentrating on the development of structures that can allow the tokenization of resources to be able to satisfy regulatory desires without constraints to international institutional adoption at scale. “For the blockchain industry to reach its full potential and tap institutional capital, meeting regulatory requirements is essential,” Chainlink Labs said in a statement shared on X.

This comes amid the SEC Crypto Task Force’s efforts to offer clarity and better regulation for the crypto industry. Along these lines, on July 16, 2025, Crypto Task Force Staff met with the ERC-3643 Association representatives. They addressed issues related to the regulation of crypto assets.

Whilst, the role that Chainlink plays further highlights its efforts to ensure the provision of a strong compliance infrastructure to decentralized finance (DeFi) and the digital assets market. One of the most important contributions it made is the Automated Compliance Engine (ACE). It represents a modular compliance framework that enables institutions and developers to incorporate regulatory policies into smart contracts directly.

The approach is beneficial in that tokenized assets are compliant because they are transferred and exchanged on the part of different chains and jurisdictions. ACE is powered by the Chainlink Runtime Environment (CRE), a specialized execution layer designed for regulated digital finance, as mentioned in our previous report.

It facilitates the execution of transactions on public and private blockchains in a manner that retains privacy and interjurisdictional complexity. Further, the system is designed to support complex workflows that require counterparties with different legal and operational environments.

What’s So Special About Chainlink’s ACE?

Meanwhile, a standout feature within ACE is the Cross-Chain Identity (CCID) framework, which Chainlink describes as a reusable identity protocol. CCID enables blockchain-based identity verification by storing cryptographic proofs of credentials, such as Know Your Customer (KYC), Anti-Money Laundering (AML) status, and investor qualification, across networks. These verifications are stored on-chain, leaving personal data to be highly secure off-chain.

In the past, a user was required to do a fresh identity verification whenever they acquired a new money network. Now, CCID streamlines this into an ability to perform identity verification once and reuse the verified credentials in various platforms that share the standard. Chainlink said this would “enable them to be reused as a reliable proof of KYC across different platforms.”

The second big part of ACE is the CCT Compliance Extension, by means of which token compliance policies may be incorporated and applied at the level of the contract. Collectively, such characteristics constitute a pillar of programmable compliance, as they allow aligning the activity of digital assets with regulatory regimes across the globe.