Odaily Frontline | Game company PoQ may issue the first SEC-approved ERC-20 stable currency
This article comes fromCoinDesk, original author: Nikhilesh De
Odaily Translator |
This article comes from, original author: Nikhilesh De。
The U.S. Securities and Exchange Commission (SEC) has issued a letter to Pocketful of Quarters (PoQ), a gaming startup looking to issue tokens on the Ethereum blockchain.
Odaily Note: On April 3, the US SEC issued the first letter of no objection to token sales for crypto startups. The SEC Division of Corporate Finance Regulation is
in the letter
stated that, based on the facts presented, the Department would not Refer enforcement action to the Commission. The condition is that the company will use its upcoming token under certain conditions, these conditions include: the funds generated by the token cannot be used to develop the company’s platform technology (such as its application); the token will have immediate utility; the TKJ token A fixed price of $1 will remain; tokens can only be used for charter services; buybacks will only be done with token discounts; TurnKey Jet does not represent this token with earning potential.
Quarters is a token built according to the ERC-20 standard, the first of its kind to receive approval from US regulators.
In a July 25 letter, Jonathan Ingram, chief legal officer of the SEC FinHub’s Division of Corporate Finance Regulation, wrote:
"Based on the facts presented, and in accordance with counsel's opinion that Quarters are not securities, if PoQ offered and sold Quarters without registration under Section 5 of the Quarters is registered as a class of equity securities, and the Division of Corporate Finance Regulation will not recommend that the SEC take enforcement action."
Lewis Cohen of DLX Law stated, “It is worth noting here that this is the first ERC-20 public chain token approved for sale. DLX Law has worked with Poq to secure the letter.
Poq CEO George Weiksner stated that Quarters is a stable currency, and as the sole seller, PoQ will set the token price as part of the SEC's compliance requirements for the company. (Smart contracts prevent tokens from being sent to unapproved accounts, limiting secondary transactions.)
PoQ is also raising funds through a registered securities sale using investment tokens, which will be separate from the Quarters sale.
He said he hopes Quarters will improve the gaming experience for players who are tired of spending huge sums of money on different platforms, adding: "It's a way to make games better."
The head of the company (and George's father) Michael Weiksner said, "The most important thing for teenage boys is to play video games, which may be the first financial product they have, and it will be a crypto wallet,"
According to Michael Weiksner, PoQ is working with Apple and Google to sell Quarters tokens in the Apple App Store and Google Play Store respectively.
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Issue conditions
The no-action objection letter requires PoQ to keep a number of promises, including ensuring that players cannot sell, buy, or exchange tokens with each other. Instead, only developer or "influencer" accounts can transact with players.
Michael Weiksner said, "Unless it is an approved developer, players can never buy, sell or barter to anyone, which is a key component of our compliance strategy."
"Accounts are born normal accounts, but they are restricted, so they cannot be used for exchange," he said. "Default accounts are restricted, and only approved accounts can accept Quarters."
Currently, only the PoQ can approve accounts, with no specific plans to grant other entities the ability to do so, he said. PoQ is still investigating whether this is possible.
Developers and influencers must go through know-your-customer (KYC) and anti-money laundering (AML) processes in order to get approved accounts.
According to the no-action objection letter, Pocketful of Quarters has fully developed its platform and can go live before any tokens are sold.
Additionally, Quarters tokens “will be immediately available for their intended purpose” on PoQ’s gaming platform when the sale begins, and “only developers and influencers with approved accounts will be able to transfer their Quarters to the Quarters Smart Contract, Exchange Quarters for Ethereum at a pre-determined exchange rate".
The SEC's Ingram warned that "any different facts or conditions could require the agency to reach a different conclusion."
He wrote, "Furthermore, this response expresses only the Department's position on enforcement actions and does not express any concerns about the issues raised or the applicability of any other laws, including the Bank Secrecy Act and the Anti-Money Laundering and Related Framework. any legal conclusions."
