Discover and read the best of Twitter Threads about #utilitytoken
Most recents (2)
1/THINKING MORE abt @HesterPeirce’s proposal for a token safe harbor, which really does advance the ball re US SEC issues. As per my pvs tweets, there are issues that still need to be addressed—basic one is whether the tokens are presumed securities during the safe harbor or not.
2/ If yes, then the proposal opens at least 2 cans of worms—the custody question + creates probs for issuers outside the US (where many countries recognize that tokens aren’t necessarily securities but if the US thinks they’re securities then other countries may follow)...
3/ The custody question is YUGE. If they’re presumed securities, then the Custody Rule & Customer Protection Rule probably apply. This means custodians must provide “good control location” (among other obligations), but there’s zero clarity on what that means for security tokens.
1/ UGH--HOPES DASHED! #tokentaxonomyact proposes 2 great things but the rest of it needs a lot of work. The $600 tax exemption & 1031 (like-for-like) exchange provisions are great. I wish the bill stopped there! The definition of "digital token" got so watered down that there's..
2/ ...not even a "taxonomy" left in the #tokentaxonomyact anymore! 4 states have now passed similar bills that define a taxonomy (#virtualcurrencies, #utilitytokens & #securitytokens) & bills are moving in 5 more states--that's 9 states in only 15 months! But this bill not only..
3/ ...jettisoned that taxonomy, it now claims federal preemption over those bills. (I think that section is probably unconstitutional. The feds clearly have preemption regarding securities, but digital tokens are expressly not securities! If they're not securities, then they're..
