A transparent, code-regulated, national securities exchange based on the blockchain and registered with the SEC is the vision of the team behind this project. In just a few months, the team behind this exchange has made a lot of progress. For instance, they are already registered with the SEC as a Regulation D Exempt Offering.
They are also registered with FinCEN as a Registered Money Services Business. Additionally, they have secured a lobbyist in Washington DC, which will help them pursue a partnership with the US government. On top of all that, they have retained an internal tax law firm, which will ensure they comply with IRS rules. Right now, they are trying to create a super Pac to help them pursue their agenda in the US Congress. The main difference between this exchange and existing blockchain based exchanges is cost, access, speed, and transparency.
CryptoSecurities Exchange And The Current Market
Right now, there is a market of $1.7 trillion OTC publicly traded companies, which have chosen not to trade on the existing legacy exchanges. The main reason for this is the high cost. Clearinghouses, brokers, lawyers, and the exchanges all want a piece of the pie. Even brokers such as Robinhood do not let investors avoid the exchange fees, clearinghouse fees, and the 3 to 5 waiting period.
To make things even worse, the problems on Wall Street have led to stringent securities regulations. This has no doubt prevented startups and entrepreneurs from gaining access to public capital. This has caused entrepreneurs to turn to presales of conceptual products as a way to raise capital in places such as GoFundMe and Kickstarter.
Sites such as StartEngine have been unable to reach their full potential since they are only permitted to allow accredited investors. This person makes more than $200,000 annually or has over $1 million in assets, not including the home. Those rules eliminate nearly the entire general population destroying the capacity of the platform.
CryptoSecurities Exchange Solutions
CryptoSecurities Exchange (CSX) has the solution. The exchange will be registered as a securities exchange with the SEC. It is going to operate under the cryptosecurities laws created in the state of Delaware. This will allow stocks to be digitized and then transferred via a distributed register in a blockchain powered private network. The goal of CSX is to digitize the shareholder register of all OTC companies in the US at zero cost.
More crucially, the CSX will work with regulators and forensic auditors who have worked at the SEC. They will utilize this expertise in creating a network with all the existing regulations and securities laws built into its code. By coding all these laws into the network, compliance will be automated.
CryptoSecurities Exchange Conclusion
Enterprises will no longer need to consult with attorneys. It will also mean that brokers will become outdated. Clearinghouses will not be needed for this new exchange. Besides that, you will no longer need a legal custodian. The CSX platform is going to connect investors and entrepreneurs with no intermediaries. This will be the exchange for Main Street and not just Wall Street.