Although the Securities and Exchange Commission’s stance on Bitcoin Exchange Traded Funds (ETF) hangs in balance, there is some good news. The regulatory body recently announced that blockchain token projects can bypass the U.S. securities registration requirements.
At a gathering hosted by Wall Street Blockchain Alliance (WSBA), Valerie A. Szczepanik stated that the regulaions could be bypassed by having so called no-action letters. Warming to her speech, Szczepanik said, “I think that’s a way forward for a lot of people who want to implement some of these things that may not exactly fit in the format of the rules that we want.”
As readers may recollect, Szczepanik was appointed in June this year, and her duties were to include coordinating efforts across all SEC Divisions and Offices regarding the application of U.S. securities laws to emerging digital asset technologies and innovations, including Initial Coin Offerings and cryptocurrencies.
At the time of her appointment, Jay Clayton, chairman of the SEC had said, “Valerie’s thought leadership in this area is recognized both within the Commission and across financial regulators in the United States and abroad. ith her demonstrated skill, experience, and keen awareness of the importance of fostering innovation while ensuring investor protection, Val is the right person to coordinate our efforts in this dynamic area that has both promise and risk.”
Previously, token issuers had three options if they wanted to conduct an ICO, news portal CoinDesk reported. The three ways were register as a securities offering, apply for an exemption or “make sure they’re not a security, the portal quoted Szczepanik as saying.
She further said, “The letters set forth exactly what the person plans to do or the entity plans to do and if it’s something that the SEC feels comfortable with we can release a no-action letter for exemptive relief saying ‘we can recommend no enforcement action.’”
Sounds like, this will be a much required and very welcome change in the SEC’s regulation policies.
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