The letter, which was published on Facebook, is reproduced below.
Open letter to the SEC.
Thank you for weighing in on the ICO market. I agree that some (light) regulation might be in order with regard to ICOs. But in the spirit of clarity, and encouraging innovation with this new vehicle that has so much potential, I recommend the following:
1. If the purpose of a token is for investment, it must register with the SEC.
2. If the purpose of a token is for societal transformation, and all proceeds go to the support and development of the token, it need not register.
3. If the purpose of a token is to raise money for a company, and the money is used to support the company, it must register with the SEC.
These clear definitions can help in two ways. They can make it clear that this is not a way for existing companies to raise money from the public without registering with the SEC, and it will allow the amazing innovations allowed by this new technology to flourish in our country unfettered. We will both protect the individual investor, and allow the U. S. to continue to lead as an innovator. I want the U.S. to be able to share in this bright future rather than giving all the benefits to countries like Switzerland, Singapore and Japan, who have taken leadership positions in the Crypto industry.
Any tokens issued before October 30, 2017 should be grandfathered in. In the land of opportunity, the innovators should be celebrated.
Please let me know if you think these guidelines make sense.
Tim Draper, Venture Capitalist
Tim Draper, a well known Venture Capitalist who is very active in Fintech, posted an open letter last week addressed the Securities and Exchange Commission regarding the recent comments on regulating Initial Coin Offerings. The letter was published in conjunction of the launch of the Credo ICO on BitBounce. Draper is an investor in BitBounce and he also scooped up about 10% of the Credo Tokens prior to the offer going live. Draper’s missive addresses the issue as to whether or not Credo is a security (and thus regulated by the SEC). Draper, among others, believes it is not and should be safe from regulatory scrutiny.