Proposed SEC Rule 195 Token Incubation Could Change the Industry

Commissioner Peirce Proposes Safe Harbor for Token Offerings Token Safe Harbor Proposal Commissioner Hester M. Peirce Update: Here is an outline of the proposed rules Any applicable digital asset will have three years after the token sale to prove if it is sufficiently decentralized and/or provide sufficient utility for the token not to be deemed a security. In effect, Rule 195 proposes the following: • The creating company must undertake a good faith effort to build a decentralized and/or functional network as defined in the rule as Network Maturity • Provide certain disclosures on a publicly available website. • Offer and sell tokens to provide access to, participation on, or the development of the network. • Undertake in good faith to create liquidity for users by listing tokens on a compliant exchange. • File a notice of reliance with the SEC within 15 days of the first sale or distribution of tokens that triggers reliance on the rule. • The creating company must also provide certain disclosures regarding their identities and experience, the source code itself (if available), details about the project and its functionality or anticipated functionality and…

Excerpt (1194 of 2795 characters). Read the whole post on the forum ↗