[Interpretation] SEC on the block chain industry ICO measures come to, but this “not surprising”


nnnnThe Securities and Exchange Commission (SEC) issued its investigation report on the production and subsequent failure of the DAO project last year, but the SEC found that the coins issued with the project were in line with the project The definition of the institution for securities, which means that the SEC or the ICO tokens apply the securities law. The move sparked a warm response from the industry, but most commentators have said that this move is not felt outside. But it is worth noting that the SEC did not publish the block chain tokens as a comprehensive feature of securities, but pointed out that the token in line with the securities or not to specific examples of specific analysis.n
nnTranslation: Clovern
nThe Securities and Exchange Commission (SEC) said yesterday that some of the initial digital currency issuance (ICO) or eligible for securities issuance in the ICO’s impact to the development of such a wide range of legal and regulatory observers in this area The move did not feel the accident.n
nAs CoinDesk said earlier in the report, the agency released its survey of the emergence of the DAO project and the subsequent failure of the project last year, which was a financing tool supported by a smart contract, Its devastating code loopholes and eventually fall apart. However, in the end there was no action on the development team behind the project.n
nHowever, when the SEC reviewed the project, it was found that the tokens issued with the project were in line with the agency’s definition of securities and specifically pointed out that other tokens offered in ICO co-operation could also be similarly qualified.n
nThis discovery quickly responded.n
nStephen Palley, a Washington – based lawyer, told CoinDesk that the agency ‘s announcement “confirms that securities law will not stop because of a computer keyboard,” and “frankly, it’ s not surprising.n
nPalley went on to say some of the uncertainty in the SEC statement, which means that the statement did not determine which block chain tokens were eligible for securities and which did not fit.n
nHe told CoinDesk:n
nn”It is unclear how the SEC will look at many other tokens that have been led by US citizens in the United States, and those who take creative solutions to deal with securities laws may want to know whether their practices are reasonable.”n
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nNot surprisinglyn
nOther commentators contacted by CoinDesk staff also said it was not surprising.n
n”The only thing that surprises me in the SEC’s survey is that it took them so long to release the results,” said Preston Byrne, a technology lawyer with knowledge of encrypted money.n
nPreston Byrne has made some comments on this concept for a long time, and he has talked about the possibility of a heavy blow to the active areas of the industry.n
nHe continued:n
nn”Some smart token dealers have taken the effort to move these ICO activities outside of the United States, and try to avoid their tokens on the US exchange, and whether it is enough to make them avoid some of the responsibilities in the United States, According to the specific situation.n
nnSteven Obie, a partner at Jones Day, added that those who have experience in securities regulation will not be surprised.n
nHe said:n
nn”People who think of this model of ICO need to be responsible for the actions taken by the SEC today, and to consult experienced lawyers when planning ICO projects and analyzing legal issues, and consider exchanging views with SEC staff.”n
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nMore measures will come one after another?n
nPerhaps one of the most noteworthy elements of the news release is that the SEC does not publish a block-chain denomination as a comprehensive feature of securities. Instead, the agency says it determines whether the tokens are specific to the securities, Some of which belong to the definition of securities, while others are not in that category.n
nPeter Van Valkenburgh, director of research at Coin Center, argues that this classification may ultimately lie in whether a token is functional or not as a means of speculation.n
nHe said in an e-mail:n
nn”We believe that applying the same facts and circumstances to other tokens means that some of the tokens may not belong to the definition of securities, especially those that have a fundamental effect and not just a speculative investment value. “n
nnPutting the results aside, commentators such as Perianne Boring, founder of the nonprofit industry advocacy group, said that the move would eventually show that the SEC could take more action in this area.n
nBoring on CoinDesk said:n
nn”We think this is a warning to those who are issuing or planning to issue tokens: the SEC will actively apply its securities laws.”n

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