The United States Securities and Exchange Commission (SEC) has finally represented a clearly formulated list of regulations according to which an asset can be interpreted as a token or a security paper. As it became known, FinLab specialists worked on the creation of this guidance for 6 months.
— SEC_News (@SEC_News) April 3, 2019
SEC staff explained that before investing money in a project, investors need to understand its structure, efficiency, and the need and support for own token. It is worth noting that in some points of their guidance, experts refer to the work of Howey. There is one more thing to pay attention to – the paragraph that focuses on the expected income from intermediaries is quite voluminous. FinLab employees explain this by the fact that this is a very common problem.
This guidance also tells how exactly companies should register their assets in the case that they fall under the category of securities.
By and large, this document is not official or legally binding, its main purpose is to explain in detail a huge number of paragraphs, which for many may seem too complicated.
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