Earlier today, the U. S. SEC [Securities and Exchange Commission] has ‘issued‘ a no-action letter to ‘TurnKey Jet’, confirming that the TKJ tokens issued via in the startup’s ICO [Initial Coin Offering] don’t seem to be the securities.
Within the letter, the regulator outlines that it thought-about that the platform would be absolutely developed and operational at the time the tokens are sold-out, and the funds won’t be employed to develop the platform. It conjointly mentions that the tokens will be straightaway usable and are marketed for their utility, not potential profits.
While other reasons cited are that the worth of the tokens throughout the sale will be mounted at one USD and every token will be granting one USD worth of service which the firm can solely purchase at a discount rate unless a court orders it to liquidate them. The SEC conjointly ‘notes‘ that since TKJ transfers will be restricted to TKJ wallets solely and cut out from wallets external to the platform, it doesn’t take into account the tokens to be securities.
Lastly, the regulator specifies that their position is predicated on the representations observed by the company via in a ‘letter‘ antecedently sent to the SEC, on yesterday dated 2nd April. Forbes ‘added‘ on the SEC’s letter, claiming that it’s the primary 1st no-action letter sent to a ‘cryptocurrency‘ business, and shaping the document as historic.
As ‘reported‘ earlier today, the SEC has revealed a framework to assist market participants ascertain whether or not a crypto asset is deemed to be an investment contract, and thus a security.
Another ‘news broke‘ earlier this month stating that the SEC is additionally willing to hire a crypto specialist professional advisor for its Division of Trading and Markets who would reportedly be tasked with establishing a thought for addressing crypto and digital asset securities.