SEC To Grant No-Action Letters To Compliant Crypto Projects, Ripple (XRP) Possible Beneficiary?
US SEC To Grant No-Action Letters To Crypto Projects In Compliance, Ripple To Possibly Benefit From This!
In 2017, the US Securities and Exchange Commission (SEC) noticed that some tokens should be viewed as securities, which was mostly emphasized during the phase of Initial Coin Offerings (ICOs). Bearing this fact in mind, the classification of several crypto projects remains undetermined, however, this is said to change ever since the SEC’s recent approach towards regulation.
More specifically, the SEC has supposedly taken a rather flexible approach in which the agency plans to offer no-action letters to crypto projects that are both in compliance (even if it may have been considered a security originally) and carries practicable use-cases reports Crypto Briefing.
As per the claims made, “No-Action” letter implies said companies are safe from possible legal action. Not all crypto projects will be granted this, as it depends on the aforementioned factors, hence, will be dealt based on each individual case. So far, firm devoted to providing what they deem as “the turn key business aircraft solution,” TurnKey Jet, has been the only one to receive this letter.
While SEC is evidently becoming more flexible, Hinman supposedly shared that said letters will only be distributed to, ‘projects which held ICOs before the regulator publicly warned that such offerings might [be] classified as unregistered securities,’ reports Crypto Briefing.
Possible Green Light For Ripple?
Crypto Briefing trusts that this might be good news for Ripple, as the SEC has yet to realize how the cross-border payments supporter, Ripple should be classified. In particular, the news outlet expects things to go well because of their numerous use cases.
Additionally, Ripple might satisfy the requirements to attain the letter due to the fact that its XRP token sales took place before the 2017 DAO report. Details regarding this lax approach was first disclosed during the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub) Forum, which is proclaimed as helping to engage SEC with “innovators, developers and entrepreneurs.”
An important point that was made during the FinHub forum comes from Chairman Jay Clayton, who has since admitted the following:
“Incorporating an existing regulatory framework into new technology is easy to say but hard to do.”
The fact that the SEC realizes this, is key, as many leaders within the industry have since noted that laws already passed previously increase barrier to entry, while preventing the extent to which blockchain technology can promote efficiency in today’s society – emphasizing that things have changed, and adjustments need to be made accordingly.