The U.S. Securities and Exchange Commission (SEC) is preparing a plan to require customers to undergo Know Your Customer (KYC) verification only once when using on-chain tokenized securities, according to Andy, founder of The Rollup, citing sources. However, it has not yet been confirmed that the SEC has officially announced or finalized this plan. According to sources, the new system would utilize a Zero-Knowledge Proof (ZK)-based identity system to allow user qualifications, once verified, to be proven across multiple on-chain exchanges and tokenization platforms. This would enhance composability, enabling users to split and execute orders across various trading venues without repeatedly undergoing KYC on each platform.
