The employees of the US Securities and Stock Exchange Committee provided instructions on how to apply federal securities laws to encryption, saying that companies that are issued or deal with symbols that may be securities should give better details about their business.
SEC’s financing department of SEC said in an employee statement On April 10, her views were granted “to provide greater clarity to apply federal securities laws to encryption assets.”
The department said that its statement had made the disclosure notes contained in the current disclosure requirements and “addresses our views on some of the specific disclosure questions presented by the market participants to the employees.”
The encryption companies that provide disclosures for their work said that the directives, which were noted by the department “have no legal strength or impact”, as the company exists specifically, how any icons issued and how to generate business – or intends to generate revenues.
Companies also revealed whether they are planning to stay involved in a network or an encryption application after its launch, and if not, whether any other entities will take responsibility.
The encryption companies must also explain their technology, such as if their product is a Proof of work Or proof of Blockchain, block size, TransactionThe bonus mechanisms, and measures to ensure the safety of the network and whether the protocol is open source or not.
SEC staff also noted that registration or rehabilitation is not required in relation to encryption offers that are not securities and not part of an investment contract. However, the statement did not provide clarity on the digital assets that could be securities.
Commercial lawyer Joe Carlsary told Cointelegraph that the statement was “a welcoming and refreshing step towards clearer organizational guidelines.”
He said: “Commitment to guidance will help entities not only to place themselves more positively with the organizers, but also show a commitment to transparency and credibility.”
Crowment companies must share all the risks
SEC’s statement said that exporters usually clearly reveal the risks related to price volatility, network weaknesses and cyber security, nursery risks, as well as commercial, operational, legal and regulatory risks.
The “fully material description” of safety is also required by the source, which includes the mechanism behind the payment of profits, distributions, profit sharing rights and voting rights, including how to apply these rights.
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He added that the company must share whether the protocol code can be modified, and if so, it is that it can make such changes and whether the relevant smart contracts have been subjected to a review of the safety of a third party.
The other aforementioned disclosure is if it is Code supplies have been fixed And how it was released or will be released, in addition to identifying executives and “important employees”.
The department said that its instructions aim to build on the Supreme Education Council The encryption workplaceWhich plans to host a series of round tables with the encryption industry to discuss how the encryption police, custody, distinctive symbol and decentralized financing should be traded.
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