The securities regulator for South Carolina has stopped their orders to “cease and desist” business activities for blockchain startups. The announcement and public documents were made available on Thursday. These regulations were originally setup by the South Carolina Attorney General’s office. There were two orders were specifically against ShipChain, while another one involved Genesis Mining. The two cases were the first time that South Carolina has ever cancelled a cease and desist against a blockchain startup.
In celebration, Genesis Mining took to their verified Twitter account to post:
We're happy to announce that South Carolina vacated and dismissed @GenesisMining from its Cease and Desist order. As we previously said, engagement with regulators and in public policy is key to moving our industry forward >> https://t.co/edXGw9XuDW #GenesisMining #GMRadiantTech
— Genesis Mining (@GenesisMining) July 26, 2018
According to the regulator, the mining contracts from Genesis Mining and the tokens from ShipChain should have been registered as securities, but they were not. ShipChain decided to speak up against the claim in May, issuing a statement that said they did “not believe [its] tokens were securities.” They added that they did not know that South Carolina constituents could even buy their SHIP tokens.
Tracy Meyers, who is the deputy securities commissioner, wrote on Thursday about this case. Regarding, ShipChain, she said,
“the Securities Division of the Office of the Attorney General of the State of South Carolina, after receiving information regarding matters detailed in the Administrative Order to Cease and Desist issued … upon due consideration of such information, finds good cause has been shown to vacate the [order].”
Genesis Mining was also fortunate enough to be freed from their charges. Swiss Gold Global worked with Genesis Mining as an unregistered broker-dealer, but they remain with their cease and desist order in place.