SEC Won’t Be Taking Further Action On Crypto Gaming Firm

The gaming rewards firm, Pocketful of Quarters (PoQ) can finally sit back and relax today as the US Securities and Exchange Commission (SEC) announced that it will not be taking any legal action against the company. This marks the second time that the SEC has issued a no-action notice to a token seller.

The Chief Legal Officer for the SEC’s FinHub, Jonathan Ingram wrote in the notice.

“Based on the facts presented, the Division will not recommend enforcement action to the Commission if, in reliance on your opinion as counsel that the Quarters are not securities, PoQ offers and sells the Quarters without registration under Section 5 of the Securities Act and does not register Quarters as a class of equity securities under Section 12(g) of the Exchange Act.”

With PoQ, gamers will be able to buy tokens using US dollar or Ethereum and the tokens, or ‘quarters’, become transferable between games. Through this way, users won’t have the need to ’cash-out’ when they want to play a new game as they can bring their winnings with them.

In order to maintain their status as a non-security, they must follow the strict set of guidelines such as the following, as noted by CCN:

• To create an Approved Account, Developers and Influencers will be subject to KYC / AML checks at account initiation as well as on an ongoing basis; 
• Quarters will be made continuously available to gamers in unlimited quantities at a fixed price;
• PoQ will not use any funds from Quarters sales to build the Quarters Platform, which has been fully developed and will be fully functional and operational immediately upon its launch and before any of the Quarters are sold;
• PoQ will market and sell Quarters to gamers solely for consumptive use as a means of accessing and interacting with Participating Games.

Blockchain

For those that are seeking further freedom within the blockchain space, this isn’t a win as such. Many people have expressed their thoughts on the matter with a… lack of enthusiasm shall we say.

For example, as the president and chief legal officer of the crypto wallet firm, Blockchain, Marco Santori puts it:

🚨 BREAKING: SEC Issues second-ever no-action letter to the seller of a token ...which doesn't seem to have even a single indicator of security status except that it happens to be a token wait why did we need a no-action letter for this  1/

— Marco Santori (@msantoriESQ) July 25, 2019

Read the whole thread here.