Does America Now Have a Reasonable Regulatory Framework For ICOs?

Initial Coin Offerings
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Does America Now Have a Reasonable Regulatory Framework For ICOs?

Post by GameOfCoins » Fri Jun 15, 2018 8:46 am

After months of speculations, the United States Securities and Exchanges Commission (SEC) has clarified its stance on the very innovative area of tokens and ICOs in an historic speech delivered by William Hinman, Director at SEC’s Division of Corporation Finance.

The entire speech is worth reading. It boils down to SEC stating that a token can start its life as a security, but once it is fully functional or sufficiently decentralized or the network does not depend on one individual or group or information asymmetry no longer exists, then it is no longer a security and becomes something else.

Sheila Warren, Head of the Blockchain at the World Economic Forum’s Centre for the Fourth Industrial Revolution, says:

“It’s quite challenging to be in the SEC’s position, to walk the line between protecting consumers and supporting innovators.

This approach shows that the SEC has come a long way in its understanding of the digital currency landscape and is able to take nuanced positions on the subject.

It will be interesting to see if a de facto safe harbour based on decentralization is created and to see how other groups evolve their governance structures in light of these illuminating remarks.” ... ework-icos

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