US Brokerage Petitions SEC to Get Moving on ICOs


Share with:

A US-Based brokerage firm has made a formal request, filing a petition to the Securities and Exchange Commission (SEC) to propose rules to regulate the ICO sales phenomenon.

From the petition:

Ouisa Capital has filed the attached petition for rulemaking with the U.S. Securities and Exchange Commission (“SEC”) asking the SEC to publish a concept release followed by proposed rules on the regulation of digital assets and Blockchain technology.

Ouisa is registered with the SEC and FINRA as a broker-dealer and is the operator of an alternative trading system (“ATS”) that uses Blockchain technology. Ouisa is very familiar with the regulatory challenges faced by fintech firms that are issuing and trading digital assets and using Blockchain technology. The petition asks the SEC to provide guidance to the fintech industry on when digital assets will be deemed securities and when the firms that facilitate the trading of digital assets must register as a broker-dealer, an ATS, or an exchange.

The petition for rulemaking also asks the SEC to consider adopting a regulatory sandbox, an approach to the regulation ofdigital assets that is being used in the United Kingdom and Singapore. Ouisa believes such an approach is similar to the approach adopted by the SEC for the regulation of crowdfund investing portal inthat itrequires such portals to either register with the SEC as a broker-dealer or to register with FINRA as a crowdfunding portal that can only engage in a limited number of activities.

As the author of this article wrote recently in Venturebeat:

The U.S. Securities and Exchange Commission has put up a major roadblock to innovation by not addressing the new phenomenon of Initial Coin Offerings(ICOs) and providing no regulatory framework for them to exist, thus stagnating U.S. Blockchain developments.

While Singapore and Switzerland are starting to swing open the doors as the only two jurisdictions in the world where tokens are treated as an asset and not as a security, the SEC is dragging its heels, which is not good for American innovators who want to raise funds using these unique financial instruments or for Europeans and Asians who want to open up to U.S. investors.

Some European ICOs are even IP-blocking Americans from participating due to the potential legal implications; and that’s not great for American investors.

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) - Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He's written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein's professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he's travelled for nearly 30 years as a Canadian expatriate living around the world.
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, "The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he's raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

Visit Website
View All Articles