The Question of Utility in the SEC's New Crypto Framework
April 04 2019 - 11:39AM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
April 4, 2019 -- ADVFN Crypto NewsWire -- Yesterday, the SEC
released a real framework for blockchain businesses to follow and
reference when considering any sort of token offering. While it
seems like much of the crypto community is still rejoicing at the
news, CoinDesk just released an article that claims the
framework is not really usable.
Precisely, it appears that CoinDesk
believes that the framework is not actually clear enough and cannot
be treated as law. In making these conclusions, they reference the
“general feeling among blockchain lawyers and regulatory experts,”
though most of the sources that make up this group are not
identified at all in the article.
Because of this, it is hard to
seriously consider their conclusions on the same level with those
that have been publicly made by industry experts on Twitter to the
opposite effect. In other words, the optimistsand
rationalistshave been louder than the critics as well as much
clearer about what they believe up to this point.
Even so, the cited opinions of
Andrew Hinkes and Katherine Wubear mentioning because they are
really the only sources that are publicly identified. Both
mentioned that the term “active participant” is used quite loosely
in the framework, which is a problem since active participants seem
to play a major rolein defining if a particular token is a
security.
Until this is made clear, as
CoinDesk’s sources point out, even a third-party ICO promoter
could cause a tokento suddenly be considered a security. With this
in mind, it can then be said that part, but not all of the new
framework is too broad. Since it took six monthsjust to get an
active version of the SEC’s ideas for token guidance, perhaps the
end of the year will bring more clarity.
By: BGN Editorial Staff
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