• 11 hours Hawkish Fed Sends Gold Prices Crashing
  • 2 days Bezos Is Heading To Space This Sunday
  • 5 days El Salvador’s Surprise Bitcoin Move
  • 8 days Markets Unfazed As Inflation Hits 13-Year High
  • 8 days How the Token Economy is Disrupting Financial Markets
  • 11 days FBI Investigating 100 Types Of Ransomware Attacks
  • 12 days Fed Ends Corporate Credit Emergency Lending Program
  • 15 days AMC Becomes the Latest Winning Meme Stock After GameStop
  • 16 days The Real Reason Your 401k Has Been Lagging
  • 17 days China Lifts Cap On Births, Allows Three Children Per Couple
  • 18 days The Market Is Ripe For Another GameStop Saga
  • 22 days Senate Grills Big Banks Over Pandemic Opportunism
  • 23 days Cannabis Has A Major Cash Problem
  • 24 days Ransomware Netted Criminals $350M In 2020 Alone
  • 25 days Russia Is Taking On Google
  • 26 days Chinese Regulators Deal Another Big Blow To Bitcoin
  • 27 days Ohio Residents Brave Vaccine for Chance To Win $1M
  • 29 days Inflation Is Coming. Are You Prepared?
  • 29 days Travel Might Get Another Supersonic Disruption
  • 31 days The World Is Running Out Of 6 Key Resources
Ohio Residents Brave Vaccine for Chance To Win $1M

Ohio Residents Brave Vaccine for Chance To Win $1M

Countries worldwide are in different…

COVID Fraud Amounts To Nearly $570M

COVID Fraud Amounts To Nearly $570M

Illicit products have run the…

Monday Markets Rise On Stellar Jobs Report

Monday Markets Rise On Stellar Jobs Report

U.S. employers added hundreds of…

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