April 14th, 2021
Photo by Robert Wiedemann on Unsplash
Photo by Robert Wiedemann on Unsplash

A cursory reading of Commissioner Peirce's updated proposal, providing regulatory clarity for tokens.

Thoughts and Big Takeaways*

  • Read the "Disclosure" and "Exit Report" sections, very important
    • You gotta start with the end in mind
    • If you don't know what Network Maturity is, or if you aren't sure you can achieve it in 3 years, get ready for some off-shore team to pick things up where you left off when you have to start registering
    • In that sense, the safe harbor is important, but can be a Faustian bargain (like making NFTs or social tokens as a short-term cash grab)
    • If you're trying to do right by the community, and inspire others to see that and do that, then you should be good.
  • 3 year grace period where you can actually build a crypto network and not feel like you're going to get:
    • A surprise fine
    • A surprise order to shut down the business
    • A bunch of lawsuits when the customers who bought the token find out that they may have a claim now that you're being forced to shut down your business
    • Being barred from raising money from the US for X years (or forever)
      • Which... forces entrepreneurs to take innovation offshore, raise offshore? 🤔
  • 3 big changes:
    1. Enhance token purchaser protections
    2. Safe Harbor now includes an "exit report" requirement
      1. An analysis done by OC to strengthen argument on why network works or is decentralized
      2. OR
      3. Announcement that tokens are going to be SEA-registered
    3. "Exit Report" requirement states what OC's analysis should address when explaining why network is decentralized.
      1. Guidance is NOT a bright-line test
        1. Guidance =/= bright-line means "It Depends," as far as the eyes can see
      2. But kind of a "framework" or rubric that makes it easier for these "exit reports" to not just look like Ron Swanson permits.
March 29th, 2021
Photo by Pablo Pacheco on Unsplash
Photo by Pablo Pacheco on Unsplash