Chamber of Digital Commerce’s Token Alliance Releases Digital Currency Guidelines
The Chamber of Digital Commerce’s Token Alliance has released the first edition of a comprehensive set of guidelines to help shape the responsible growth of the token and initial coin offering (ICO) markets.
The first edition titled: “Understanding Digital Tokens: Market Overviews & Guidelines for Policymakers & Practitioners” is a collaborative report to be used as a resource among industry innovators, investors and policymakers.
The report features regulatory overview: a comprehensive understanding of the regulatory environment and securities law as it relates to tokens in the United States, Canada, Australia, the United Kingdom, and Gibraltar. It also covers Principles and Guidelines for Utility Tokens: Industry developed principles for token sponsors and trading platforms to promote sound business practices and minimize unintentional regulatory risk; and Token Economic Landscape: An in-depth look into the growth and evolution of the global token landscape, with economic data and statistics.
Utility Tokens Addressed
This first installment addresses so-called “utility tokens,” an aspect of the token economy fighting to be recognized.
Paul Atkins, CEO of Patomak Global Partners and former SEC Commissioner said:
“These industry-developed principles are an important tool for responsible growth and smart regulation that strikes the right balance between protecting investors while allowing for innovation in this new technological frontier.
“We think it is important to explain the unique attributes of blockchain-based digital assets, which are not all strictly investment based, and provide guidance to consumers, regulators and the industry.”
Dr. James Newsome, Founding Partner of Delta Strategy Group, former Chairman of the CFTC and Co-Chair of the Token Alliance, adds that “the Token Alliance is taking a positive and proactive approach towards working with regulators, which could ultimately create unprecedented opportunities for investment, innovation and jobs.”
According to the report, in 2017, startups raised more than $7.3 billion via token issuances, up from $100 million in 2016 – the industry is expected to grow dramatically as cryptocurrency adoption becomes more prevalent and reaches the mainstream.