TokenSoft, Inc., a leading digital asset issuance and management platform after taking into account the recent guidelines about security token regulations from the SEC has announced that it will no longer restrict clients to use one of its previously vetted and approved law firms.
SEC Security Token Guidelines
The SEC recently issued the long awaited framework, which gave the market more specific guidance from which to work. The guidelines focused on tokens and outlined how and when these cryptocurrencies might fall under the securities classification.
The framework itself outlines a number of factors that token issuers must keep in mind before evaluating whether or not their offerings qualify as securities. These factors include an expectation of profit, whether a single or at least central group of entities are responsible for specific tasks within the network, and whether a group is creating or supporting a market for a digital asset.
Effect on TokenSoft Business
Mason Borda, CEO of TokenSoft. stated that when they launched TokenSoft, it was well known that legal landscape was new to blockchain-based issuance of securities. Borda further clarified that in order to mitigate those legal risks, they decided to perform due diligence on a select group of law firms that shared their conservative view that digital assets should follow securities regulations.
The SEC guidelines for TokenSoft means, they are now less concerned that attorneys may allow their clients to adopt an interpretation of the regulations which carries higher risk. Now, They can aim to serve a broader client base due to this common understanding that comes from clearer regulatory guidance.