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U.S. securities regulator unveils legal framework for digital coin offerings – Source Reuters Tech News

FILE PHOTO: Commissioner Hester Peirce participates in a U.S Securities and Exchange Commission open meeting to propose changing its decades-old definition of an “accredited investor” in order to allow more Americans to buy shares in private companies, in Washington, U.S., December 18, 2019. REUTERS/Erin Scott/File Photo

WASHINGTON (Reuters) – Technology trading start-ups may be permitted an exemption to raise capital using digital currencies or “tokens” under the current securities law framework, a top U.S. financial regulator said on Thursday.

But firms must develop a transition plan after three years to show whether those products can be traded under a “decentralized” framework, SEC Commissioner Hester Peirce said.

The long-awaited proposal by the U.S. Securities and Exchange Commission to allow trading platforms to issue Initial Coin Offerings (ICOs) comes after the regulator previously said the tokens can be considered securities and are subject to the same safeguards…

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Source Reuters Tech News

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