Yesterday, the SEC released a real framework for blockchain businesses to follow and reference when considering any sort of token offering. While it seems like much of the crypto community is still rejoicing at the news, CoinDesk just released an article that claims the framework is not really usable.
Precisely, it appears that CoinDesk believes that the framework is not actually clear enough and cannot be treated as law. In making these conclusions, they reference the “general feeling among blockchain lawyers and regulatory experts,” though most of the sources that make up this group are not identified at all in the article.
Because of this, it is hard to seriously consider their conclusions on the same level with those that have been publicly made by industry experts on Twitter to the opposite effect. In other words, the optimistsand rationalistshave been louder than the critics as well as much clearer about what they believe up to this point.
Even so, the cited opinions of Andrew Hinkes and Katherine Wubear mentioning because they are really the only sources that are publicly identified. Both mentioned that the term “active participant” is used quite loosely in the framework, which is a problem since active participants seem to play a major rolein defining if a particular token is a security.
Until this is made clear, as CoinDesk’s sources point out, even a third-party ICO promoter could cause a tokento suddenly be considered a security. With this in mind, it can then be said that part, but not all of the new framework is too broad. Since it took six monthsjust to get an active version of the SEC’s ideas for token guidance, perhaps the end of the year will bring more clarity.
By: BGN Editorial Staff