I just got off a call with Ronald Hammond. He’s a Legislative Assistant for Congressman Warren Davidson (OH-8). Representative Davidson recommended a “light touch regulatory framework that provides certainty for the ICO market”.
The premise of the call was regulations surrounding security/utility tokens and what we can do to enable a thriving environment for issuers and investors. Please feel free to add any feedback you might have that could add to or answer any of these issues.
Below were some of the top questions we went over:
- Accredited investors: do we redefine them to include more people? If yes, how do we do this?
- What constitutes a utility token: Is it because it is decentralized? If yes, how can you quantify it? Does consumption of the utility have to be present in the product? If yes/no, what’s the reasoning.
What else needs to be present for a token to be a utility vs a security?
- Do we need a regulation layer between Reg CF and Reg A+ to accommodate retail investors? If yes, what would that look like? If no, why?
- What is the best way to protect retail investors while enabling them to participate in token offerings?