Digital Token Clarity: New Rules and Investor Protection
This act introduces new rules for digital tokens, like cryptocurrencies, to facilitate their development and trading. It creates specific conditions under which certain tokens will not be treated as traditional securities, potentially impacting the accessibility and security of digital asset investments. Citizens will gain clearer information about the risks and purposes of token projects.
Key points
Establishes a "safe harbor" for certain digital tokens, meaning they will not be subject to strict securities regulations for a specified period if they meet certain conditions.
Requires token creators to disclose detailed information on public websites, including source code, transaction history, development plans, and team data, increasing transparency for purchasers.
Mandates risk disclosure for token purchases, aiming to protect citizens from potential losses.
Defines when a token ceases to be covered by the "safe harbor" (e.g., upon network maturity or after 3 years), which may alter its legal status.
Amends definitions of exchange, broker, dealer, and other financial entities to exclude activities related to safe harbor tokens, potentially affecting how these assets are traded.
Expired
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