SEC Lets Crypto Play, Clears Gaming Company to Sell Tokens 

SEC Lets Crypto Play, Clears Gaming Company to Sell Tokens  1

Pocketful of Quarters (PoQ) can breathe a sigh of relief today. The SEC announced that it will not take action against the gaming rewards company. This is only the second time the SEC has issued a “no-action” notice to a token seller. 

In the notice, Jonathan Ingram, chief legal officer for the SEC’s FinHub, wrote, 

“Based on the facts presented, the Division will not recommend enforcement action to the Commission if, in reliance on your opinion as counsel that the Quarters are not securities, PoQ offers and sells the Quarters without registration under Section 5 of the Securities Act and does not register Quarters as a class of equity securities under Section 12(g) of the Exchange Act.”

With PoQ, gamers can purchase tokens using USD or ETH and the tokens, or “Quarters,” become transferable between different games. This way users don’t have to “cash-out” when they want to play a new game; they can bring their winnings with them.

There are Still Rules, Many Rules 

To maintain their status as non-security, they must adhere to a strict set of guidelines. Here are some of note: 

• “To create an Approved Account, Developers and Influencers will be subject to KYC / AML checks at account initiation as well as on an ongoing basis;” 

• “Quarters will be made continuously available to gamers in unlimited quantities at a fixed price;” 

• “PoQ will not use any funds from Quarters sales to build the Quarters Platform, which has been fully developed and will be fully functional and operational immediately upon its launch and before any of the Quarters are sold;” 

• “PoQ will market and sell Quarters to gamers solely for consumptive use as a means of accessing and interacting with Participating Games.”

Blockchain Space Seems Encouraged, Sort of 

Although this should be viewed as a win for those seeking more freedom within the blockchain space, several people took to Twitter to express their lack of enthusiasm.

Marco Santori, president and chief legal officer of crypto wallet company Blockchain, puts it somberly,  

Stephen Palley, a lawyer specializing in the blockchain space, echoes Santori’s sentiment but adds some understanding, 

A Framework for the Future 

In March, the SEC issued its first no-action notice to TurnKey Jet, a U.S.-based business travel company.  They are now allowed to sell their tokens, which are not defined as securities, so long as they adhere to similar rules as PoQ. In each case, the tokens must maintain a fixed price and cannot be transferred to external wallets. Also, the companies cannot use any funds from token sales to develop their platforms. 

With several of the stipulations for the two rulings aligning, we may slowly start to get an idea of how the SEC separates securities from utility tokens. The good news is that if a company with a 12-year-old CEO can pass the regulation gauntlet, then others could soon follow. 

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

The Largest Crypto Scams Of 2022 (So Far)
The Largest Crypto Scams Of 2022 (So Far)
June 14, 2022
How Do Scammers Entice Their Prey?
May 10, 2022
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022
Mintable CEO Zach Burks Talks to Us about the Opensea Stolen NFTs and Their Recovery
March 21, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
The Unconventional Guide to Ethereum
October 28, 2021

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin21,433 0.04 % 0.14 % 12.53 %
Ethereum1,245.8 0.06 % 1.36 % 25.17 %
Tether1.001 0.04 % 0.13 % 0.01 %
USD Coin0.9989 0.16 % 0.08 % 0.04 %
BNB239.72 0.14 % 0.22 % 21.45 %
XRP0.3670 0.03 % 1.05 % 18.63 %
Cardano0.9566 0.22 % 0.68 % 6.96 %
Binance USD1.002 0.24 % 0.04 % 0.09 %
Solana40.96 0.17 % 3.39 % 28.73 %
Dogecoin0.07223 2.60 % 5.44 % 35.98 %

Bitcoin (BTC) $ 21,424.00
Ethereum (ETH) $ 1,243.53
Tether (USDT) $ 1.00
USD Coin (USDC) $ 1.00
BNB (BNB) $ 239.49
XRP (XRP) $ 0.366707
Cardano (ADA) $ 0.516945
Binance USD (BUSD) $ 1.00
Solana (SOL) $ 40.94
Dogecoin (DOGE) $ 0.071576