The legal framework of the issuance of digital currency published by the U.S. Securities Regulatory Agency

category:Internet
 The legal framework of the issuance of digital currency published by the U.S. Securities Regulatory Agency


Hester Peirce, a member of the securities and Exchange Commission, said companies must come up with a transition plan three years later to prove whether these products can be traded in a decentralized framework.

The SECs proposal to allow trading platforms to issue initial tokens (ICOS) has long been awaited, after the agency said the tokens could be treated as securities and subject to the same safeguards required to sell traditional securities.

Pierce announced a proposal to provide a three-year window to develop a network that would allow tokens to be distributed to potential users, programmers, and participants in the network, and freely traded, while retaining significant protection for token buyers.

Initial token issuance has become a source of wealth for digital currency entrepreneurs, who can quickly raise millions of dollars by creating and selling digital tokens without supervision. The proposal aims to provide a legal framework for the issuance and sale of tokens under federal securities law. Pierces proposal, which is open to public consultation, will require companies to disclose information based on the needs of token buyers. These details include source code, development plan, initial development team and other information, pierce told the industry in Chicago. The technology platform must also disclose the applicable anti fraud provisions and specify when token trading constitutes securities trading at the end of the three-year period. I think this proposal points out a way forward for token buyers to get the information they need, but its just a draft right now and needs the active participation of the public, Pierce said Source: financial website editor in charge: Qiao JunJing, nbj11279

Initial token issuance has become a source of wealth for digital currency entrepreneurs, who can quickly raise millions of dollars by creating and selling digital tokens without supervision.

The proposal aims to provide a legal framework for the issuance and sale of tokens under federal securities law.

Pierces proposal, which is open to public consultation, will require companies to disclose information based on the needs of token buyers. These details include source code, development plan, initial development team and other information, pierce told the industry in Chicago.

The technology platform must also disclose the applicable anti fraud provisions and specify when token trading constitutes securities trading at the end of the three-year period.

I think this proposal points out a way forward for token buyers to get the information they need, but its just a draft right now and needs the active participation of the public, Pierce said