The U.S. Securities and Exchange Commission (SEC) issued a no-action letter to Pocketful of Quarters (PoQ), a gaming startup looking to issue tokens on the Ethereum network. Obtaining the no-action relief from the SEC means that PoQ is now able to legally sell its Quarters tokens to consumers without first needing to register them as securities.
Now, from what I understand, it's the second time ever that the SEC has issued a no-action letter to the seller of a token, it is the FIRST time they have ever done the same for an Ethereum-based ERC-20 token. I think this should be considered as some kind of an advancement for the crypto industry in the U.S. but does it signify more advancements to come?
Even though this was a step in the right direction, PoQ has to commit to some... interesting guidelines in order to maintain their non-security status:
• “To create an Approved Account, Developers and Influencers will be subject to KYC / AML checks at account initiation as well as on an ongoing basis;”
• “Quarters will be made continuously available to gamers in unlimited quantities at a fixed price;”
• “PoQ will not use any funds from Quarters sales to build the Quarters Platform, which has been fully developed and will be fully functional and operational immediately upon its launch and before any of the Quarters are sold;”
• “PoQ will market and sell Quarters to gamers solely for consumptive use as a means of accessing and interacting with Participating Games.”
I'm interested in hearing your thoughts on this. Do you feel like this was a win for us or irrelevant to the bigger picture? Here's the letter: https://www.sec.gov/corpfin/pocketful-quarters-inc-072519-2a1
