Before you get too excited, note what it says in fine print at the end:
“This framework represents the views of the Strategic Hub for Innovation and Financial Technology […] of the Securities and Exchange Commission. It is not a rule, regulation, or statement of the Commission, and the Commission has neither approved nor disapproved its content. Further, this framework does not replace or supersede existing case law, legal requirements, or statements or guidance from the Commission or Staff. Rather, the framework provides additional guidance in the areas that the Commission or Staff has previously addressed.”
So it’s a bit like “…you can’t park near the fire hydrant” – but how far is near?
The framework was cobbled together by SEC Commissioners Valerie Szczepanik, Senior Advisor for Digital Assets and Innovation aka “crypto czar” and Bill Hinman, director of the SEC’s Division of Corporation Finance.
Apparently, it’s an analytical tool that will help ICO issuers sort out if they will do jail time or not. But it’s a little late, the ICO ship left the harbour last year.
However, it’s great that they go into great detail how Digital Assets play out with the Howey test – which has been an ongoing debate for years. And they are inviting issuers who have any issues to contact them at https://www.sec.gov/finhub which is a breakthrough – it’s been years of silence on this issue, never mind dialogue.
- Investment of money: They bought the orange groves with real cash (U.S. dollars).
- Common enterprise: The orange groves were managed under Howey’s company (i.e., a common enterprise).
- You expect profits because of someone else’s work: Critically, the investors did not have to tend to the oranges themselves; Howey’s people did all the work.
CEO of MediaShower John Hargrave popped a great hypothetical in my inbox today which helps unpack the paper:
- Indian Central Bankers Excludes Cryptocurrency Projects from it’s New Startup Fintech Sandbox - April 19, 2019
- Enterprise Ethereum Alliance Plans to Launch New Token Taxonomy Initiative - April 19, 2019
- Social Blockchain Project BitGive Signs Deal with Uphold - April 19, 2019
- Crypto Wars Continue – Bitcoin’s Self Proclaimed Founder Craig Wright Threatens to Sue Ethereum’s Vitalik Buterin - April 19, 2019
- Gate.io Exchange Releases IEO Startup Platform and Launches First Project with CNNS - April 18, 2019
- Telegram Cuts Deal With Wirecard to Build Blockchain Shared Payment and Banking Solutions For TON - April 17, 2019
- Token-as-a-Service (TaaS) Shuts Down – Distributes Assets to Token Owners - April 17, 2019
- eToroX Launches 8 Stablecoins on New Cryptocurrency Exchange - April 17, 2019
- Powerhouse Production Company Endemol Shine International Partners with Blockchain Startup BitMovio - April 17, 2019
- Huobi Prime’s Second EO Launch – Two Billion NEW Tokens Sold in Six Seconds - April 17, 2019
- Panxora safeguards ICO assets with crypto treasury management service - April 17, 2019
- Turing Award Winner and MIT Cryptographer, Dr. Silvio Micali, Publicly Opens TestNet at VC-backed Algorand Blockchain - April 16, 2019
- Gibraltar Stock Exchange Opens the Doors to Secondary Market for Security Tokens - April 15, 2019
- Bittreo Releases Crypto Brokerage SAAS - April 14, 2019
- International Monetary Fund (IMF) Head Says Cryptocurrency is Shaking the System – Wary Eye on Silicon Valley Data Collectors - April 14, 2019
- US Regulator SEC Issues First ‘No Action’ Letter for Unregistered ICO - April 13, 2019
- Jason Hanania: Architecture of a Technodemocracy – Author Interview - April 12, 2019
- Block.one’s FinLab EOS VC Fund Invests in Moonlighting - April 11, 2019
- Blockstack Files with SEC for Reg A+ Token Offering - April 11, 2019
- US Congress Introduces Bipartisan-Supported Token Taxonomy Act - April 10, 2019