The US Chamber of Digital Commerce, through the Token Alliance, made available a technical report in which the authors release various guidelines for the crypto tokens market to grow responsibly. The document intends to encourage further guidance for stakeholders such as users, investors and the various regulators that look closely at crypto assets and Initial Coin Offerings (ICOs).
The 108-page document, entitled “Understanding Digital Tokens: Market Review and Guidelines for Policymakers and Professionals,” contains recommendations for groups or individuals promoting crypto tokens. The first suggestion they highlight is that sponsors should be aware that confusion can occur if they use vague terminology. So they invite the promoters to avoid language related to financial values or marketing that might confuse readers about the nature of the crypto tokens.
As a second point, it is explained that the tokens sponsors must have lawyers who are experts in the US federal securities law. This is because these are instruments that can be used by regulators seeking to prevent securities fraud, such as the United States Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC).
The US Chamber of Digital Commerce offered a guide for legal management of crypto tokens and ICOs
In another section, the steps to be followed, from start to finish, in a token distribution are mentioned. The following are discussed:
- to carry out the concept and development of the technology
- to write the white paper and other materials accurately
- to carry out regulatory and corporate reviews
- to carry out a public distribution
The aspects to be included in the white paper should consist of explaining the technology in detail, explaining the project, exemplifying its use, describing the token, characteristics, risk disclosure, promotion, and marketing.
Industry and government must work together to create a regulatory landscape that allows crypto tokens market participants and ICOs to precisely determine when a token is a product and when it is a value. Legal predictability promotes market efficiency by eliminating unnecessary costs and obstacles, facilitating the development of new projects that will benefit consumers. Legal clarity will also help the government to remove bad actors who have taken advantage of the lack of policy guidance.