The US Securities and Exchange Commission (SEC) has given the go signal for a cryptocurrency gaming company to release blockchain tokens even without registration as the tokens are not considered as securities.
Pocketful of Quarters
This determination was recently published on the SEC website. It was said to be a reply to an inquiry made by Pocketful of Quarters (PoQ) regarding its proposed tokens dubbed “Quarters.”
Jonathan Ingram, the SEC FinHub’s chief legal advisor, posted that looking at the presented facts, the agency’s FinHub Division won’t push for enforcement action if PoQ offers Quarters for sale even without registering it. He also noted that counsel is of the opinion that the proposed Quarters are not seen as securities.
However, Ingram noted that the SEC’s decision also depends on several stipulations given to the token after the company’s initial request. One of the stipulations state that PoQ will only “market and sell Quarters to gamers” and that it will only be for accessing and playing specific games.
The SEC terms also specified that holders of the Quarter token can only make purchases or do business with PoQ or other “Approved Accounts.” These accounts will also be subjected to the current Anti-Money Laundering and Know Your Customer regulations.
As per Pocketful of Quarters’ official website, the company offers prizes for contests in popular games like CSGO, Fortnite, and PUBG.
The company’s investment page also indicated that investors get a portion of royalties from the token sales in Ether (ETH). These can be claimed through a smart contract.