#JCT SEC’s latest proposed draft of the “Regulation Crypto Assets” — I think what’s truly worth paying attention to isn’t the fundraising limit, but the fact that the U.S. is redefining the lifecycle of Tokens.
In the past, the biggest problem with token issuance was: after fundraising, the boundaries of the project team’s responsibilities were unclear, and the Token remained stuck in prolonged controversy under securities regulation.
Now, the SEC’s approach follows a different logic:
Allow fundraising, but disclosures are required; allow development, but commitments must be fulfilled; after the project completes its core build-out, the Token only then has a chance to “graduate”. (Securities and Exchange Commission)
This means Tokens could shift from being merely speculative instruments back into a tool for project financing and network building.
More interestingly, this could also change how project teams behave.
In the future, what may really matter won’t be how beautifully the whitepaper is written, but:
After you raise funds, what exactly do you do? Do you fulfill your commitments? Does the product have users? Does the network have value?
So I won’t simply interpret it as “ICO returning = the altcoin season is here.”
My understanding is that the U.S. is trying to move the crypto market from “wild fundraising” toward a complete lifecycle of “regulated fundraising — building — fulfilling — exiting regulation.”
If this ultimately gets implemented, the next round of things truly worth studying may not be who can tell the best story, but who has the ability to actually finish the story.
In the past, the biggest problem with token issuance was: after fundraising, the boundaries of the project team’s responsibilities were unclear, and the Token remained stuck in prolonged controversy under securities regulation.
Now, the SEC’s approach follows a different logic:
Allow fundraising, but disclosures are required; allow development, but commitments must be fulfilled; after the project completes its core build-out, the Token only then has a chance to “graduate”. (Securities and Exchange Commission)
This means Tokens could shift from being merely speculative instruments back into a tool for project financing and network building.
More interestingly, this could also change how project teams behave.
In the future, what may really matter won’t be how beautifully the whitepaper is written, but:
After you raise funds, what exactly do you do? Do you fulfill your commitments? Does the product have users? Does the network have value?
So I won’t simply interpret it as “ICO returning = the altcoin season is here.”
My understanding is that the U.S. is trying to move the crypto market from “wild fundraising” toward a complete lifecycle of “regulated fundraising — building — fulfilling — exiting regulation.”
If this ultimately gets implemented, the next round of things truly worth studying may not be who can tell the best story, but who has the ability to actually finish the story.