There’s so much action coming out of the SEC today my head is spinning.
I think this is the “plain English guidance” on token issuance & crypto trading that the SEC promised to release. Will sit down & read and as usual, brain-dump in this thread...🧠🧠
I think this is the “plain English guidance” on token issuance & crypto trading that the SEC promised to release. Will sit down & read and as usual, brain-dump in this thread...🧠🧠
okay first of all, this is neither "plain English" nor is it much "guidance"
**facepalms as I continue reading**
**facepalms as I continue reading**
1/ For background: earlier this morning, the SEC came down with two big actions today, one against AirFox, the other against Paragon. In both actions, offering unregistered securities was the main sin, and both also have to compensate any investors who wants to make a claim.
2/ Aside from those two, the SEC really has gone after other crypto cases this year: Crypto Asset Management, TokenLot, and Coburn of Etherdelta.
On the whole, the point is this: if you are offering/selling/advising/offering platforms for securities, you. must. register.
On the whole, the point is this: if you are offering/selling/advising/offering platforms for securities, you. must. register.
3/ Nothing new under the sun thus far. If you're dealing w/ a security, security laws apply to you. You could be an issuer, an investment adviser, a broker-dealer, an exchange, an ATS.
At this point, that sentiment is pretty much beating a dead horse.
At this point, that sentiment is pretty much beating a dead horse.
4/ I've said these before, any of the definitions for those terms above are super broad. For example, this statement uses the example of Tokenlot (highlighted here). It's a) broad af; b) doesn't clarify any specifics; and c) seems to encompass most activities out there. 
5/ Oh I've reached the conclusion already, which basically is the agency saying "fill out this form with all your information and contact the staff for assistance". Which means...we have to go right up to the lion's mouth to get answers from them. That's a pretty scary thought.
6/ @jchervinsky brought up a good point in a separate conversation, which is this: FinCEN thankfully accepts anonymous questions, which makes clients more comfortable with it. Not sure how the SEC's FinHub would react to that.
7/ Of course, it could also be a lot less ominious than that. I reacted fairly positive to FinHub when the announcement was made because I saw it as a chance for education on both ends (industry <--> regulators).
8/ The TLDR sentiment: nothing surprising out of this statement as it is just a reiteration on what the agency has said before. Looks like the path to compliance with federal securities laws going forward are i) registration + ii) ongoing disclosure. Unlikely any way around that.
