Public uprising around 2018 announces security codes as killer app. After bitcoin fell from a peak of $ 20,000 in December 2017, some of the more revolutionary cryptocurrency promises have lost their luster – especially after the subsequent crash in the altcoin market and the first chaos in the currency supply.
On the other hand, offering security tokens or STOs has been described as a more manageable, albeit still extreme, way of modernizing the old dusty financial systems that support stock trading. A revolution in finance.
Two years later, this revolution in stocks and bonds did not happen. This is the story of the reason, as well as a map of where the security codes are and where they appear to be intended.
Distinguish between security codes and cryptocurrencies
Classic cryptocurrencies are decentralized symbols with more dollar value than stocks. While many cryptocurrencies have insulted securities regulators who protested their classification, digital currencies such as Bitcoin and Ether are seen as non-securities. In the United States, for example, they are regulated as commodities – not as currencies, but as a condition that is not characterized by any particular company or responsible entity.
The security codes are different. They openly declare that they are an investment in the company that issues them. Consequently, they have stricter reporting requirements than other coded assets and are largely identical to the inventory.
The advantage of SDs over conventional securities is that they work in the same technical way as crypto assets. Trading does not end when night falls in New York or Hong Kong. It is also faster and can provide virtual liquidity globally. Why does a company decide to determine the extent of listing for a particular stock exchange that serves a jurisdiction, while a group of investors can travel around the world?
Where is the government going?
Unfortunately for those who want to release it, the main benefits of security codes are the same reasons that regulators are concerned about. The United States is home to the world's largest stock market. Therefore, the US Securities and Exchange Commission plays an important role in the management of global securities trading.
Similarly, the SEC's standard requirements set global standards for BoDs. When it comes to the question of which cryptocurrency is acceptable as a stock, much of the industry expects the Securities and Exchange Commission to make its predictions clearer. This does not only apply to disclosures and registration forms. Even when a new symbol is registered and appears to be in full compliance with existing regulations, it is still not possible to distribute it widely.
It is not fair to blame the SEC for fantastic progress given the number of symbols actively listed in the committee. However, there are still major obstacles to reaching out to STO groups collectively, including organizational uncertainty and resistance between traditional stock markets. Unfortunately, the safety mark in these markets will have a major impact, but these large markets are also waiting for regulators, who in turn are looking at the smaller markets, which are currently looking for warning signs.
BRD Wallet and SBI Mining CEO Adam Trademan have broadly stopped the slow formation of the SEC on the blockchain by stating STO:
“This is unthinkable. The only thing that really gets in the way is regulatory stuff. It's not like the Securities and Exchange Commission says no. They have not figured it out yet. They just do not understand. ”
While allowing certain security codes, regulators were reluctant to open locations for the actual distribution of these codes, especially locations that may be accessible to regular investors on the main street. The exchanges that work with security codes focus mainly on institutional investor specials or symbols that are initially offered under full exceptions for share registration, especially Reg. And.
Karen Opel, who recently joined Goodwin Procter as a partner in blockchain and cryptocurrency: “The obstacle to implementation is the modernization of many exchange mechanisms or other trading platforms to host these assets.” “Information disclosure is not an insurmountable obstacle. I think the question is how the digital securities should be sold. ”
Ben Marzouk, a lawyer specializing in raising digital capital at Eversheds Sutherland, agreed: “Regarding objections, I think the main concerns of the Securities and Exchange Commission are the valuation, liquidity and preservation of digital or ‘token’ assets in stock market.