Another good news for in the crypto community- SEC may release blockchain companies from current ICO restrictions. The Securities and Exchange Commission or SEC commissioner Hester Pierce recently proposed a new regulatory framework for ICO companies and unqualified investors. Really, it sounds like a good day is coming in the crypto community especially for blockchain companies. Actually, the SEC commissioner wants the blockchain space and the regulator to work in a different way. Likely, he wants them to work in an easy and comfortable manner for the next three years. So, let’s hope for the best!
Current securities laws don’t allow numerous ICO startups and similar firms to collect money from U.S. citizens. According to the law, almost any cryptocurrency like coin or token is a security. So, on Thursday, Hester Pierce adding an extension “accredited investor” to allow more trading among ordinary Americans. Try to make a broad and feasible space.
Essentially, the plan went live on 18 December 2019, in Washington D.C. But, It is not in the final version. It is important to check whether digital assets fit into the securities definition. Over time, the properties of digital cash change. And Peirce thinks the regulation must include all the possible diversions.
The proposal comes after the SEC officially claimed that some of the digital assets have properties of securities. Traditional security investment is a risky deal, with lots of underwater rocks and tricks. However, the regulatory framework for ICO, IEO and even STO companies is only a matter of time and development.
ICO Law should make through Commission
According to Peirce, the regulatory draft as the first sketch of many others. So she seeks for the community to help-
“I see this proposal as a path forward that achieves the objective of getting token purchasers the information they need. But it is also just a sketch – a work in progress – that requires productive engagement from the public”
Thus the proposal is not official. It must gather formal opinions from other SEC Commissioners, including Chairman Jay Clayton. The current draft claims that the blockchain firms should receive a three years development term.
The goal is to create conditions where tokens are “distributed to and freely tradable by potential users, programmers and participants in the network”. The SEC already deals with dozens of ICO startup founders. These include small-scale ICO scammers and the mastodons of the Internet market.
ICO Fraudsters to Prison
Rules and Enactment should be the same for all. So, the SEC likes to double-check even people like Pavel Durov or Mark Zuckerberg. In the next three years, the market participants should decide on creating a central blockchain that will facilitate ICO’s. According to the plan, it is up to the blockchain startups and other businessmen to build conventional accounting. It can be a usual database or a blockchain. But it must protect investors.
The ICO authors will have to publish their anti-fraud plan and understand the needs of their token buyers. Here, the money masters will enter information about fiduciary duties, the source code, its clarity, and quality. They will have to write lengthy posts about the company’s inner workings, milestones, etc.
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Writer, researcher, and analyst on cryptocurrency and blockchain technology at L&P Digitech Pvt. Ltd. Also managing the content with SEO at this current company. Keen interest to know more about new technologies related to the crypto world and blockchain technology. Completed Masters in Computer Application (MCA) and holds Post Graduate Diploma in Instructional Designing with sound knowledge in Articulate3. Out of all, love to travel, listen to music, and to eat also.