Tim Draper: A Open letter to the SEC.
Open letter to the SEC.
In the spirit of clarity, and encouraging innovation with this new vehicle that has so much potential, I recommend the following:
1. If the purpose of a token is for investment, it must register with the SEC.
2. If the purpose of a token is for societal transformation, and all proceeds go to the support and development of the token, it need not register.
3. If the purpose of a token is to raise money for a company, and the money is used to support the company, it must register with the SEC.
These clear definitions can help in two ways. They can make it clear that this is not a way for existing companies to raise money from the public without registering with the SEC, and it will allow the amazing innovations allowed by this new technology to flourish in our country unfettered. We will both protect the individual investor, and allow the U. S. to continue to lead as an innovator. I want the U.S. to be able to share in this bright future rather than giving all the benefits to countries like Switzerland, Singapore, and Japan, who have taken leadership positions in the Crypto industry.
Please let me know if you think these guidelines make sense.
Tim Draper, Venture Capitalist
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