In Law360, IP Litigator Examines 2020 Fintech Regulations and Litigation to Watch
In 2019 the U.S. Securities and Exchange Commission issued its second no-action letter for a digital token to a gaming company, saying the issuance of the platform's blockchain-based token did not trigger registration requirements with the commission. The letter, together with the first SEC-approved digital token offering under Regulation A+, offered guidance around the regulation of digital tokens.
Ms. Spencer explains that the SEC no-action letters signal a willingness to work with the industry to move things forward. She notes that staying in close touch with SEC staff will be crucial for fintech companies because the sector may not see a resolution on some particular issues, like when a digital token changes from a payment tool to an investment tool.