New Report Provides Guidelines for Navigating Token Landscape
This week, the Chamber of Digital Commerce (CDC)’s has released the first set of guidelines to help shape the responsible growth of the token and initial coin offering (ICO) markets.
Entitled ‘Understanding Digital Tokens: Market Overviews & Guidelines for Policymakers & Practitioners,’ the report was written by the Token Alliance (TA).
The TA is an industry-led initiative of the CDC which has over 350 global industry participants and is considered to be a key resource for the emerging industry surrounding the generation and distribution of tokens using the blockchain.
The first instalment addresses so-called ‘utility tokens,’ an aspect of the token economy which is currently fighting to be recognised, and is to be used as a resource among industry innovators, investors and policymakers.
Paul Atkins, Chief Executive Officer of Patomak Global Partners and former SEC Commissioner, said:
“These industry-developed principles are an important tool for responsible growth and smart regulation that strikes the right balance between protecting investors while allowing for innovation in this new technological frontier.
“We think it is important to explain the unique attributes of blockchain-based digital assets, which are not all strictly investment based, and provide guidance to consumers, regulators and the industry.”
The report features three parts:
Regulatory Overview: A comprehensive understanding of the regulatory environment and securities law as it relates to tokens in the United States, Canada, Australia, the United Kingdom, and Gibraltar.
Principles and Guidelines for Utility Tokens: Industry developed principles for token sponsors and trading platforms to promote sound business practices and to minimise unintentional regulatory risk. Token Economic Landscape: An in-depth look into the growth and evolution of the global token landscape, with economic data and statistics.
Dr James Newsome, Founding Partner of the Delta Strategy Group, and former Chairman of the CFTC and Co-Chair of the Token Alliance added:
“The Token Alliance is taking a positive and proactive approach towards working with regulators, which could ultimately create unprecedented opportunities for investment, innovation and jobs.
“This report will serve as an important resource for policymakers seeking to educate themselves and engage in meaningful industry dialogue.”
According to the report, in 2017, start-ups raised more than $7.3 billion via token issuances, up from $100 million in 2016 – the industry is expected to grow dramatically as cryptocurrency adoption becomes more prevalent and reaches the mainstream.
“We applaud our members who have worked together to form this critical stepping stone on responsible oversight and governance for the token economy it is a strong step towards self-governance and a powerful tool to help builders and investors create a responsible and successful industry”
said Perianne Boring, Founder and President of the Chamber of Digital Commerce.
The Chamber of Digital Commerce is the world’s largest trade association representing the digital asset and blockchain industry. Headquartered in Washington, DC, the Chamber is the founder of the TA which comprises blockchain and token experts, technologists, economists, former regulators, and practitioners from over 20 law firms.
Built on an open-source foundation, the TA guidelines are based on the current regulatory state of affairs and will likely evolve over time.
The TA anticipates additions to these guidelines will be published in the near future to address the other essential aspects of the token economy.
by Joy Lewis