SEC Commissioner proposes 3 year grace period for crypto startup’s common legal issues

posted 8 months ago
SEC Commissioner Hester Peirce, “Crypto Mom” as many in the crypto community refer to her as, spoke at the International Blockchain Congress in Chicago this week regarding crypto startups.

She proposed crypto startups to have a 3 year grace period from their first token sale to achieve a level of decentralization sufficient to pass through the SEC’s securities evaluations (EG the Howey Test, the famous US Supreme Court assessment.) It’s worth noting, the SEC has brought enforcement actions against a number of companies that created and sold tokens, such as Telegram and Kik, 2 major messaging platforms. The crux of the issue is that some tokens may appear to have the qualities of a security at launch, but mature to the point where it no longer appears to be one.
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