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Commissioner of the Securities and Exchange Commission (SEC) Hester Pearce proposes a plan to introduce regulatory holidays 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.
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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 offer, crypto projects mustwill meet some stringent requirements regarding fundraising through an initial coin offering (ICO). Among the mandatory requirements will be the disclosure of necessary information about investors, the publication of the source code, roadmap, transaction history, etc.
Not everyone enthusiastically welcomed this proposal, objecting that it could provoke another wave of dubious fundraising.
Back in the past year, Esther Pearce stated that because of its ability to conserve and transfer value, digital assets “will someday become the money of the Internet.”