The SEC commissioner Hester Pierce wants the blockchain space and the regulators to work on an eased juridical framework for ICOs in the next three years.
Current securities laws don’t allow numerous ICO startups and similar firms to collect money from U.S. citizens. According to the law, almost any cryptocurrency, coin or token is almost a security. On Thursday, the SEC’s Hester Pierce added a proposal to extend the definition of ”accredited investor” to allow more trading among ordinary Americans.
The plan originally went live on 18 December 2019, in Washington D.C. It is not in the final version and must show whether digital assets fit into the securities definition. Over time, the properties of digital cash change, and Peirce thinks the regulation must include all the possible diversions.
“I see this proposal as a path forward that achieves the objective of getting token purchasers the information they need, but it is also just a sketch – a work in progress – that requires productive engagement from the public”
The ICO authors will have to publish their anti-fraud plan and understand the needs of their token’s buyers. Here, the money masters will enter information about fiduciary duties, the source code, its clarity, and quality.