• 485 days Will The ECB Continue To Hike Rates?
  • 485 days Forbes: Aramco Remains Largest Company In The Middle East
  • 487 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 887 days Could Crypto Overtake Traditional Investment?
  • 891 days Americans Still Quitting Jobs At Record Pace
  • 893 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 896 days Is The Dollar Too Strong?
  • 897 days Big Tech Disappoints Investors on Earnings Calls
  • 898 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 899 days China Is Quietly Trying To Distance Itself From Russia
  • 900 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 904 days Crypto Investors Won Big In 2021
  • 904 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 905 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 907 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 907 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 911 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 911 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 912 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 914 days Are NFTs About To Take Over Gaming?
Biggest Job Gains in History, but It’s Not Enough

Biggest Job Gains in History, but It’s Not Enough

The U.S. economy added 467,000…

China Is Quietly Trying To Distance Itself From Russia

China Is Quietly Trying To Distance Itself From Russia

Western sanctions against Russia are…

Another Banner Year for Billionaires

Another Banner Year for Billionaires

Unsurprisingly, last year was very…

Crypto Insider

Crypto Insider

Cryptoinsider.com

Crypto Insider provides high-quality, long-form analytical pieces, investigative journalism, with less emphasis on breaking news. Our mission is to maintain high journalistic standards in the…

Contact Author

  1. Home
  2. News
  3. Breaking News

SEC Releases New Token Sale Guidelines

SEC Guidelines

The U.S. Securities and Exchange Commission (SEC) has decided not to advocate for action against the TurnKey Jet Inc. (TKJ) token sale, but included a few interesting requirements.

The SEC’s move, or lack thereof

In an April 2 statement from the commission, chief legal advisor Jonathan Ingram wrote to TurnKey Jet Inc.:

Based on the facts presented, the Division will not recommend enforcement action to the Commission if, in reliance on your opinion as counsel that the Tokens are not securities, TKJ offers and sells the Tokens without registration under the Securities Act and the Exchange Act. Capitalized terms have the same meanings as defined in your letter.”

Ingram, however, clarified that TurnKey Jet must adhere to several parameters going forward. The startup is not allowed to utilize capital raised via token sales to develop its “Platform, Network, or App, and each of these will be fully developed and operational at the time any Tokens are sold,” Ingram wrote.

Ingram noted the tokens must be ready for usage at the point of sale for their designed purpose and the startup must limit token transactions to TKJ wallets on its platform. He also specified token pricing of “one USD per Token throughout the life of the Program,” and the tokens will be used in exchange for the startup’s services, consistent with the asset’s dollar pegging.  Related: The World Of Apple Just Got A Lot Bigger

Additionally, the SEC advisor included:

If TKJ offers to repurchase Tokens, it will only do so at a discount to the face value of the Tokens (one USD per Token) that the holder seeks to resell to TKJ, unless a court within the United States orders TKJ to liquidate the Tokens; and [t]he Token is marketed in a manner that emphasizes the functionality of the Token, and not the potential for the increase in the market value of the Token.”

These requirements appear to remove any speculatory nature that might otherwise have been associated with the asset mentioned.  

The ICO game

The SEC has slammed the regulatory hammer on initial coin offerings (ICO) over the past several months, enforcing regulation on the space. In mid to late 2017, many projects began banning U.S. participants, likely due to such regulatory complications in the U.S.

Many of such ICOs achieved meteoric rises in price, likely due to speculation. These startups often raised incredible amounts of funds, even without products. In May of 2018, CNBC reported on EOS, which raised around $4 billion even before its scheduled full product launch in June of 2018

A large number of projects even turned out to be scams. CoinTelegraph reported on a study from Stratis Group which found that over 80% of 2017’s ICOs turned out to be in the scam category. Although, with all the rules and regulations present, investment-style token sales now often only allow accredited investor participation.

The situation is tough for knowledgeable investors without the money for such accreditation. One cannot help but think there must be a solution which would allow regular citizens to invest freely while regulators enforced a few guidelines against pure scams

By Benjamin Prius via Crypto Insider

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment