Bruce Fenton States Regulations Are Unnecessary for Security TokensOctober 27, 2018
SEC has clearly differentiated between security tokens and the utility tokens. Entrepreneurs are now having to educate themselves about how to work in compliance with the additional regulations when it comes to launching a security token. Even in cases of companies who already own a token, they need to re-read the regulations to understand what kind of token they are already having.
Bruce Fenton feels that it is unnecessary because those who are already into business are operating legally.
Several new rules and KYC/AML norms apply for security tokens. Fenton states that all of these rules are made by Jackasses who are simply getting people to jump through hoops.
Fenton stated that security tokens have forever been legal as assets back them. And, he stated that they are no different from any kind of security. He further added that there is nothing called illegal security.
When speaking to an audience, Fenton stated that in the 1930s people were selling securities under a tree. Since they are legal and they have forever been legal, he is of the opinion that things are already working well with Security Tokens.
The system of trading securities, he says dates back to 1602. He further added that they worked well without all of these extra rules. Therefore, he states that there is no reason for why these tokens should not exist under the old system. It only matters about how companies are following the rules on securities and how these securities have to be issued. They need to be as well able to issue these tokens very freely.
Fenton feels that the cryptocurrency issue is getting stricter unnecessarily. He further believes that blockchain technology has got the potential to improve several businesses.
On a platform like YouTube, he has to say that even smaller token creators can gain an audience, which can help them generate income with time. It is possible for local and smaller businesses to gain funding for their business, which is something that was not previously possible.
People will be able to buy security tokens even in a local sandwich shop in their area. It is due to this reason that small businesses can make use of the security tokens to have an improved chance of securing long-term income with an overall success rate.
Even if regulations get tough, Fenton states that the future of the crypto industry will be bright.
Leaseum Partners are offering compliant security tokens for a real estate property in NYC.