WASHINGTON (Reuters) – Wall Street may be permitted an exemption to safely raise capital using digital currencies or “tokens” under the current securities law framework, a top financial regulator said on Thursday, but firms must develop a transition plan after three years to show whether those products can be traded under a “decentralized” framework.
The long-awaited proposal by the U.S. Securities and Exchange Commission (SEC) to allow trading platforms to issue Initial Coin Offerings (ICOs) comes after the regulator has previously said that the tokens can be considered securities and are subject to the same safeguards required in traditional securities sales.
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