Bitcoin Global News (BGN)
April 4, 2019 -- ADVFN Crypto NewsWire -- Yesterday marked
another historical first, in addition to the SEC’s release of its’
guidance framework for token offerings. A company called Turnkey
Jet, Inc. was cleared by the SEC to run an ICO in the United
States.
If you’re wondering why this is
historic, the answer is as simple as the fact that the SEC had
never publicly cleared an ICO with what is called a no-action
letter, until this particular case. While this news
broke yesterday, it bears mentioning again because of the
conclusions that have been drawn as more information has come to
light.
To recap, Turnkey has been allowed
to run their ICO legally, provided that several specific conditions
are met. Central to these conditions are the two ideas that the
company’s native token must remain at the value of a dollarand
funds from their ICO cannot be used for
development.
If you’re looking at the
difficulties that even stablecoins are having related to
maintaining a dollar valueand thinking this is nearly impossible,
then you’re thinking logically. Once it is mentioned that these
conditions were agreed on by the company and the SEC after more
than 50 phone calls and 10 letters, the process to get to a
no-action letter becomes even more daunting.
Interestingly enough, according to
CoinDesk’s piece today, Turnkey seems confident that it will
succeed in spite of this stiff set of rules, though their lawyer
has now stated that development of a native blockchain is out
of the question.
Reportedly, instead, they will
either use an enterprise solutionor go the route of the bulk
of the ICO space that has come before them and hook their prospects
to the Ethereum network. If they do choose the Ethereum network,
however, it might be doubly hard to keep their token value stable,
since Ethereum-based projects seem to have a history of
exponentially growing in value as their user base
grows.
In the end, it is advisable that
any crypto group which is interested in pursuing a similar route to
Turnkey’s makes sure to remember the difficulties that will be
inherited at the end of the road, at least until the relevant
regulatory frameworks evolve.
By: BGN Editorial Staff