SEC Releases First-Ever ‘Zero-Action’ Letter, Allows TurnKey Jet Clearance To Offer Its Non-Security Tokens
SEC Issues Its First “No Action” Letter Clearing Company To Sell Its Non-Security Tokens In The US
A major change in the Initial Coin Offering (ICO) scenario in the United States just happened. The U. S. Securities and Exchange Commission (SEC) has just issued a “no action” letter to a company called TurnKey Jet, Inc.
This business travel company has agreed with the regulator to a certain set of conditions in order to prove that its tokens are not securities, but utility tokens instead. Now, they will have the SEC to prove that they are not meant to be securities, which is a first in the U. S. part of the industry.
The conditions that will have to be followed by this company are that the funds generated by the tokens cannot be used in the development of the company’s app and that they will be useful for the buyers immediately. Also, the tokens will have a fixed price. They will be worth one dollar each.
Another important aspect of the deal is that these tokens cannot be considered securities because they will not have the potential for profit and they will not represent shares in the company’s stocks. Also, these tokens cannot be transferred. TJK wallets will trade the tokens between themselves, but third-party trading outside of the platform is not allowed.
TurnKey sent a letter to the SEC yesterday showing its case and, for the first time, the SEC has actually agreed with it.
According to Coindesk, which reported on this story, many inside sources claim that people from the industry have talked to the SEC about how to create compliant tokens in case they are not securities. The answer, it seems, lies on similar no-action letters like this one.
TurnKey was originally founded in 2012, in Florida. The company has an air taxi service that operates in the United States. Since the advent of the blockchain revolution, the company has been interested in technology, which has led it to start this project with blockchain-based utility tokens.