SEC: “Stock token exchanges can operate subject to legal compliance”

SEC: “Stock token exchanges can operate subject to legal compliance”

Crypto News

The U.S. Securities and Exchange Commission (SEC) said that token stock exchanges, which guarantee the legality of the origin of assets in their accounts, will not be subject to regulatory sanctions.

According to a letter from the SEC’s Trade and Markets Division to FINRA senior management, token stock exchanges that do their best to operate under existing rules will not have problems with the regulator.

The SEC stated that such organizations will need to implement procedures to assess the legality of the sale of traded digital securities throughout their life cycle, in addition to compliance with the federal law on securities. This includes checking the ICO registration rules, as well as ensuring compliance with the law in secondary market transactions.

The SEC recently announced that it will simplify settlement procedures for digital securities for broker-dealers, and in early September tZERO received FINRA approval to launch a retail broker-dealer.

Earlier this month, Unikrn, a start-up developing a platform for eSports betting, settled claims with the SEC to hold an unregistered ICO in 2017 with the payment of $6.1 million to investors. In addition, the SEC accused rapper T.I. of violating securities laws when promoting ICO FLiK.


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