SEC to clarify its stance on digital tokens

The threat of legal repercussions for token-issuing projects from the U. S. Securities and Exchange Commission (SEC) may be one of the largest impediments to faster development of the blockchain space. The lack of legal clarity may be one of the reasons why the ICO market has recently stagnated if not crashed.

U. S. SEC Commissioner Hester Pierce announced during a speech at University of Missouri School of Law that the SEC is preparing a supplementary guidance for projects wondering whether their token sale constitutes a security offering under the existing U. S. rules. She even hinted at the possibility of reconsideration of the use of the Howey test at the heart of the ICO legal status controversy.

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