The U.S. Blockchain Association has created a working group to coordinate the efforts of industry participants to amend securities laws.
Therefore, the working group includes such members as CoinList Platform headed General Counsel Georgia Quinn, Protocol Labs startup headed legal adviser Ian Darrow, and Grayscale cryptocurrency investment firm headed Craig Salm.
Clear securities laws are vital for the future growth of the blockchain economy in the US.
— Blockchain Association (@BlockchainAssn) November 20, 2019
The organization believes that the status of digital tokens should be clearly defined by securities laws. The association insists that a number of tokens should be removed from the scope of the Securities Act of 1933.
In April, SEC introduced a token issuing guide. Its main task is to answer whether a particular token is a security or not.
— SEC_News (@SEC_News) April 3, 2019
Courts use the SEC guidelines to interpret the Howey test, which determines whether an asset is a security. However, the manual is purely advisory in nature. The Association stated that the token classification mechanism should be approved at the legislative level.
What Does Association Offer
However, the organization believes that tokens purchased by investors before the launch of the system in which they will be used are most likely securities. Accordingly, the issuers of these tokens must comply with all provisions of the Securities Act of 1933. This is necessary to protect the interests of investors.
Tokens that are used in “public and decentralized blockchains” have their own value if they exchange for goods or services. It turns out that the value of the asset does not depend on the efforts of the organization or the people who created the blockchain on which it works. However, such tokens are devoid of signs of investment contracts – they cannot be considered as securities.
Recall that the Blockchain Association was created in September last year. This non-profit organization is designed to lobby the interests of entrepreneurs and investors in the cryptocurrency industry.
admin , 2019-11-22 06:18:26 ,