SEC Commissioner wants to introduce a three-year “vacation” for startups

Securities and Exchange Commission (SEC) Commissioner Hester Pierce proposes plan to introduce regulatoryholidays for cryptocurrency startups.

In his speech at the Chicago InternationalBlockchain Congress Pierce said crypto startups should be given a three-year grace period from the sale of their first tokens. This will allow the network to prepare for the SEC assessment, including the Howe test conducted by the US Supreme Court.

Pierce believes that assessing the status of the token asa security cannot be static and “does not apply strictly to a digital asset”. This means that some tokens may seem like securities at startup, but as they develop, they will cease to be such.

This is not the first time Pierce has been discussing the idea of ​​a safe haven, but for the first time he has submitted an official proposal for discussion.

If the SEC accepts the proposal, crypto projects shouldwill meet some strict requirements regarding fundraising through an initial coin offering (ICO). Mandatory requirements will include disclosure of necessary information about investors, publication of source code, roadmap, transaction history, etc. 

Not everyone enthusiastically welcomed this proposal, objecting that it could provoke another wave of dubious fundraising.

Just last year, Esther Pierce said that thanks to its ability to store and transfer value, digital assets “will one day become the money of the Internet.”