SEC issues first No-Action Letter for Unregulated ICO

On April 3, 2019, the Securities and Exchange Commission (“SEC”) issued its first no-action letter related to the offering and sale of digital tokens. The beneficiary is TurnKey Jet, Inc. (“TurnKey”) which proposes to offer and sell blockchain-based digital assets in the form of “tokenized” jet cards (“Tokens”). The no-action letter, which some see as a turning point in the digital asset regulatory space, is unlikely to provide much encouragement to other issuers desiring to offer and sell their tokens without registration. The no-action letter, which is a letter indicating that the SEC staff will not recommend legal action against the requesting entity if the requesting entity complies with the requirements set forth in the letter, provided for a multitude of requirements that TurnKey must comply with that are likely not possible across most token projects. These factors include: TurnKey will not use any funds from Token sales to…

Read more detail on Recent Banking and Finance Law posts –

This entry was posted in Banking and Finance law and tagged , , , , . Bookmark the permalink.

Leave a Reply