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SEC proposed to introduce a grace period for new ICO projects



SEC proposed to introduce a grace period for new ICO projects

The American regulator is considering the possibility of creating temporary benefits for crypto and blockchain startups to give additional time for the development of this industry in free conditions.

SEC representative Hester Pearce made this proposal at the Chicago International Blockchain Congress. According to Coindesk, the chairman of the financial regulator suggested giving blockchain projects the opportunity to develop without risking breaking the law.

According to Hester Pearce, it is possible to provide a company with three years after successfully selling tokens and collecting investments. The expert believes that this period will be enough to achieve the necessary level of decentralization and prepare for the first check by the regulator. The important point is that during this time the project coins can finally lose the signs of securities.

Pierce is sure that further sales of coins on exchanges also do not give them signs of securities, but serves to transfer the project’s capabilities to the client, and to convert team tokens into fiat, which will ensure further development of the project. These measures are also aimed at protecting the rights of investors, since each startup will be obliged to provide the regulator with the created conditions for combating fraud.

Although this is a good solution, it can be a bit late. Many ICO projects, thanks to the thoughtless waste of money from their investors, have themselves discredited this area, said Mikhail Uspensky, deputy chairman of the committee for legal support of the digital economy of the Russian Bar Association.

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