The Securities and Exchange Commission released a detailed framework Wednesday for cryptocurrency companies to sell digital tokens similar to Bitcoin without violating securities laws.
The guidance follows up on promises made by SEC officials over the past year to provide clarity to start-ups interested in the technology.
An explosion of so-called initial coin offerings, in which startups raised millions off of white papers and digital tokens, prompted the SEC to crack down on the industry for violations of securities laws. But the commission has maintained that it wants to create a path for companies interested in using digital assets for purposes beyond capital formation to operate within the confines of U.S. law.
In a separate but related action, the financial regulator also provided a letter saying it would take no action against TurnKey Jet, a jet chartering firm. The company wants to offer its own digital currency usable only for purchasing private jets. The SEC said it would not pursue action against the company if its currency is valued the same as a dollar and is not be traded for profit on secondary markets or used to raise capital for the company.
