Dear TWEX Subscribers,
It is a pleasure to send out our TWEX Newsletter – Volume V.
Today we would be one of the key questions on ICO regulation i.e.
Why does the SEC want to regulate tokens?
The mere fact of raising money to run a business and creating a hope of profit either directly or indirectly via the sale of the tokens at the market value classifies a token as a security token irrespective of what promoters might say and state.
This is the base of incoming regulations by the SEC! This simple regulatory act means that almost all tokens will have to present documents as if they were conducting an IPO (risk factors, disclaimers, audits, compliance, KYC, AML, etc…)
Needless to say that 95 % of all tokens out there will fail and 99 % of new ICOs will not see the light of day. This regulatory move will also satisfy other legal parameters that they (SEC and US Govt) were finding hard to deal with:-
1. The fact of whether a token is a currency or not,
3. Protection of the SEC and the government from investor claims because of losses incurred while speculating (yes some investor’s gamble their money away, loses and then try to find a culprit to blame!)
With a single stroke, almost all of their problems are resolved (SEC & US Government).
By the way, what do you think will other regulatory bodies around the World then do?
Please respond to us at firstname.lastname@example.org
Happy reading and investing! Wish you an enjoying weekend.
With warm regards,