The US Securities and Exchange Commission (SEC) allowed the cryptocurrency gaming company Pocketful of Quarters to issue tokens without registration, since they are not securities.
SEC has published
decision on your site as a response to a request from the company Pocketful of Quarters to produce Quarters tokens. Jonathan Ingram, General Counsel for SEC FinHub, wrote:
“Based on the facts presented, the Division will not recommend to the Commission law enforcement actions against the company, since, in our opinion, Quarters tokens are not securities. Pocketful of Quarters may sell tokens without registration in accordance with Section 5 of the Securities Act, and may not register them as securities in accordance with Section 12 (g) of the Exchange Act. ”
Ingram wrote that the SEC solution was based on different conditions for Quarters tokens in the original request. Including the provision that “Pocketful of Quarters will only promote and sell Quarters to players for use as a means of accessing and participating in games.” In addition, according to the terms, Quarters owners can make transfers of tokens only with Pocketful of Quarters or other players.
This is the third SEC approval to issue tokens this month. Earlier, the Commission approved
sale of Blockstack tokens for $ 28 million, as well as issue
tokens by the blockchain company Props PBC.