SEC Securities Commisoner's statement

[Julian_Williams]

The link is worth looking at

Edited February 9, 2019 by Julian_Williams

[BrownBear]

That settles that.

Can moon now?

[WuWei]

Perfect: "Tokens sold for use in a functioning network, rather than as investment contracts, fall outside the definition of securities."

[Julian_Williams]

9 minutes ago, WuWei said:

Perfect: "Tokens sold for use in a functioning network, rather than as investment contracts, fall outside the definition of securities."

It gets better the more you read the context:

Yet many of these projects begin in a centralized manner that looks about the same as any other start-up. A group of people get together to build something and they need to find investors to fund their efforts so they sell securities, sometimes called tokens. The SEC applies existing securities laws to these securities offerings, which means that they must be conducted in accordance with the securities laws or under an exemption. When the tokens are not being sold as investment contracts, however, they are not securities at all. Tokens sold for use in a functioning network, rather than as investment contracts, fall outside the definition of securities....

.......Director Hinman went on to explain, however, that because the token “all by itself is not a security, just as the orange groves in Howey were not,” a token sold in a securities offering might later be sold in a transaction that does not constitute a securities offering.[14] Once “a network becomes truly decentralized, the ability to identify an issuer or promoter to make the requisite disclosure becomes less meaningful” and offers and sales of tokens are no longer subject to the securities laws.[15]

Director Hinman’s speech has provided a useful framework within which people can analyze their token offerings in connection with the securities laws. The staff is working on some supplemental guidance to help people think through whether their crypto-fundraising efforts fall under the securities laws. There is also a standing offer for people to come in for so-called no-action relief in connection with a particular token or project. The applicant for no-action relief lays out the parameters of what it is trying to do, and the SEC staff can respond by saying that it would not recommend an enforcement action to the Commission based on the parameters set forth in the request for relief.

Edited February 9, 2019 by Julian_Williams

[WuWei]

Wow, thanks for sharing this other part - it sounds as if this securities issue is settled to me - game on xrp!

 "Director Hinman went on to explain, however, that because the token “all by itself is not a security, just as the orange groves in Howey were not,” a token sold in a securities offering might later be sold in a transaction that does not constitute a securities offering.[14] Once “a network becomes truly decentralized, the ability to identify an issuer or promoter to make the requisite disclosure becomes less meaningful” and offers and sales of tokens are no longer subject to the securities laws.[15]"

[Julian_Williams]

1 hour ago, WuWei said:

Wow, thanks for sharing this other part - it sounds as if this securities issue is settled to me - game on xrp!

 "Director Hinman went on to explain, however, that because the token “all by itself is not a security, just as the orange groves in Howey were not,” a token sold in a securities offering might later be sold in a transaction that does not constitute a securities offering.[14] Once “a network becomes truly decentralized, the ability to identify an issuer or promoter to make the requisite disclosure becomes less meaningful” and offers and sales of tokens are no longer subject to the securities laws.[15]"

look at the link - it is very long and really very clear : https://www.sec.gov/news/speech/peirce-regulation-view-inside-machine

Edited February 9, 2019 by Julian_Williams

[Sharkey]

This sounds very promising, but is this Commissioner speaking officially for the SEC?   Of course, I am hoping this is the case, but I am also cautious about making assumptions.