The Chamber of Digital Commerce’s Token Alliance is producing a new group of guidelines built to help the cryptocurrency and initial coin offering (ICO) markets grow responsibly. Released today as a whitepaper, the report is entitled “Understanding Digital Tokens: Market Overviews & Guidelines for Policymakers & Practitioners.”
The paper will specifically pertain to “utility tokens,” which provide users with future access[1] to products or services. In these instances, ICOs will raise money for new blockchain products by offering investors future use of the items being developed (usually at a discounted rate).
Former Securities and Exchange Commission (SEC) commissioner and CEO of Patomak Global Partners Paul Atkins comments, “These principles are an important tool for responsible growth and smart regulation that strikes the right balance between protecting investors while allowing for innovation in this new technological frontier. We think it is important to explain the unique attributes of blockchain-based digital assets, which are not all strictly investment based, and provide guidance to consumers, regulators and the industry.”
The whitepaper is broken up into three distinct sections. The first offers a comprehensive overview of current and future regulations to give investors a stronger understanding of securities laws in the U.S., Canada, the U.K. and Australia.
The second part showcases industry-developed principles for both trading platforms and token sponsors to better promote safe and legal business practices and lower the risks to organizers and traders.
The third and final portion of the report provides a general discussion of the growth and evolution of the digital token space thus far.
Perianne Boring is the founder and president of the Chamber of Digital Commerce. Speaking with Bitcoin Magazine, she said that the lack of clear regulation in the cryptocurrency arena, particularly surrounding ICOs, has led
