SEC seeks comments on proposals to improve investment token market mechanisms, promoting it as a fundraising option. Traditional financial service providers must offer related services through a separate legal entity.
SEC Seeks Public Comments on Proposed Amendments for Investment Token Market
The Securities and Exchange Commission (SEC) is considering amendments to ministerial regulations to enhance the investment token market and promote it as a fundraising alternative. The goal is to make the market more robust and efficient, encouraging businesses to use investment tokens as a viable option for raising capital. Traditional financial service providers will need to offer related services through a separate legal entity to ensure clarity and protect investors.
SEC Board Approval of Proposal to Amend Ministerial Regulations
The SEC Board has approved in principle a proposal to amend the Ministerial Regulations on Licensing of Digital Asset Businesses to support fundraising and investment in investment tokens. These changes aim to increase access channels to investors in primary and secondary markets. Key components of the proposal include revising qualifications and licensing processes for securities companies, exempting digital asset fund manager licenses for certain entities, and requiring securities companies to establish separate entities for cryptocurrency and utility token services.
Public Hearing and Submission of Comments
The SEC is currently conducting a public hearing on the proposed amendments to ministerial regulations. Interested parties can access the consultation paper on the SEC website and submit comments and suggestions via email. Stakeholders are encouraged to participate in the public hearing, which concludes on 14 October 2024. For more information, visit the SEC website or the central legal hub provided in the sources.
Source : SEC to promote a robust ecosystem of investment tokens