TokenSoft has historically required that their clients use specific law firms that have already been vetted and approved by the platform. The “legal landscape,” as TokenSoft says, was a complicated place with the blockchain industry, and it was easier to work with law firms that that already had to experience with the crypto industry. However, with new guidance provided to TokenSoft from the SEC on security token regulations, this restriction will no longer be implemented, according to a press release from PR Newswire.
CEO Mason Borda of TokenSoft said that the use of these law firms before the guidance
“helped protect our clients and encouraged them to take a more conservative approach.”
In turn, their clients have been able to seamlessly work with the regulators. Borda further explained,
“When issuers come to us today as their technology partner for a compliant issuance, they typically have already engaged a law firm for their project, and if their counsel carries the SEC's perspective, we don't want to be a reason for changing that important relationship.”
The guidance from the SEC was titled the Framework for “Investment Contract” Analysis of Digital Assets, ensuring that the market has more information on the way to probably work. There have been multiple law firms to already work with attorneys in traditional banking to create blockchain practices that guide the market in securities, banking, and tax regulation. TokenSoft believes that the market participants are starting to see tokens as regulated instruments, and there are already many use cases for blockchain tech that have been witnessed.
As the year has gone on, TokenSoft has noticed increasing interests from the traditional finance world in issuing their own digital securities and asset-backed tokens. Law firms that want to provide assistance regarding digital assets with TokenSoft can visit https://www.tokensoft.io.