Dissecting the SEC Regulation on Digital Token Sales
The breaking news yesterday was that the SEC will be cracking down on the sale and transfer of digital tokens henceforth causing many to speculate whether the digital asset community was headed into choppy, uncharted territory.
I am a big proponent of blockchain in general and I believe that the technology has far-reaching abilities beyond its most popular use in the digital currency sphere. It is a great and revolutionary open ledger record-keeping measure and has uses in all industries ranging from finance to healthcare.
That is why I am not ready to write off the blockchain and digital asset community even after the SEC regulation. As a digital coin enthusiast, my team at Celsius Network and I have outlined the positive takeaways from the SEC ruling:
- The SEC regulation will allow the cryptocurrencies to move from its bubble phase to a more mature implementation phase. Destabilizing and volatile alt-coins will be vetted out of the system as Bitcoin and Ethereum will emerge as the leading digital coins
- By not implicating any of the parties involved in the DAO hack (that propagated the SEC investigation in the first place), the blockchain community will not be left with a sour taste hereafter
- Not all digital token sales will have to be registered with the SEC. Immediate no-nos are ones that enable speculators to manipulate coin offerings or digital tokens that pass the Howey Test
- Blockchain investors will now be aware of the risks of investing in token generating events and should decide beforehand whether or not to get involved
- The crypto-community of miners, digital coin holders, blockchain investors and entrepreneurs will now be aware of the need to self-regulate their community and remove bad players
Read more on the Celsius Network blog: https://medium.com/@CelsiusNetwork/what-the-sec-regulation-means-for-blockchain-3b3a89ee90e1
The Celsius Network
At my new venture, Celsius Network, we hope to further the applications of blockchain using an Ethereum-based marketplace that will resolve the problems created by antiquated banking systems.
There is no denying that there are some niggling problems in the digital asset world which the SEC tried to bring to notice and address before things got out of hand. It does not discount the fact that blockchain has tremendous potential and has the capability of being the greatest revolution of our times (if we foster it with the right nurturing).
