Drumroll please…The US Securities and Exchange Commission has released a framework for classifying digital assets as securities.
While most people were busy with last minute Christmas shopping, on December 20th of last year Representatives Warren Davidson and Darren Soto were busy finalizing and introducing the proposed new “Token Taxonomy Act” (HR 7356). The proposed Token Taxonomy Act seeks to modify both existing securities and tax laws to create a safe haven with respect to the issuance and trading of cryptocurrency assets. While the bill takes some novel approaches there are several items in the bill which I think both raise concern as well as hinder the chance that this bill will actually make it into law.
The House Financial Services Committee recently unveiled a new bill aimed at fostering increased private investment. The “JOBS and Investor Confidence Act of 2018,” as the bill is titled, is actually a compilation of 32 individual bills. While the complete list of the respective bills can be found on the House Financial Services Committee’s website, I felt a summary of some of the more important bills (at least in terms of crowdfunding) was warranted.
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Through a triad of recent releases/interviews, the SEC has further clarified how it views the offering and sale of crypto assets. These guidance materials provide some really good insight on the SEC’s thinking with respect to its treatment of crypto assets; including some bright line interpretations with respect to both Bitcoin and Ethereum. However, certain of the SEC’s recent statements may give industry participants a false sense of hope and there are still may questions left unanswered.
Following the SEC’s recent initial subpoena offerings (pun intended) targeting ICO issuers, many believe the SEC might now turn its sights toward some of the gatekeepers involved in the subject ICOs, including the attorneys. Some attorneys practicing in the ICO space have simply been too aggressive in their approaches, or otherwise negligent in their advice to clients, drawing recent criticism from the SEC and increasing the potential that we will see the SEC take direct action against such attorneys.
many believe the SEC might now turn its sights toward some of the gatekeepers involved in the subject #ICOs, including the attorneys
Anthony J. Zeoli
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