Last week, The U.S. Securities and Exchange Commission released a “no-action” letter. This is a first step toward defining a framework under which digital assets issued by a company would be considered utility tokens rather than securities. This marks a historic day for the blockchain technology and cryptocurrency industry as the framework paves the way for companies to attract funds by issuing tokens leveraging blockchain technology.
TurnKey Inc. is a jet-leasing business and the beneficiary of the new development, the “no-action” letter outlines a number of terms which, if followed, will ensure that Turnkey Jet Inc. will become the first company in the USA to conduct a coin offering by issuing utility tokens leveraging blockchain technology.
The “no-action” letter is based on the Howey Test which is a central part of existing securities regulation. The test allows for understanding whether a transaction is an “investment contract”.
Here are some of the conditions that TurnKey Inc. has to meet per requirements of the “no-action” letter:
Bitcoin is the most prominent cryptocurrency. It is currently valued at over 5,000 US dollars and it has grown by over 1,000 percent since 2016. Many critics argue that Bitcoin and other cryptocurrencies have little real-world value.
The “no-action” letter dramatically alters that notion. Now Bitcoin, as well as other cryptocurrencies, could be legally exchanged to utility tokens. As expected, the market had a positive reaction to the news which allowed Bitcoin price to stabilize above 5,000.00 USD after it broke numerous resistance levels.
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