KODAKCoin Backers Warn SEC Could Restrict Token Trading
A new "light paper" says the token could face "significant restrictions" should the U.S. Securities and Exchange Commission (SEC) deem it a security.
A new "light paper" released for the forthcoming KODAKCoin sale states that the token could see "significant" trading restrictions should the U.S. Securities and Exchange Commission (SEC) deem it a security.
– which is being developed by a firm called WENN Digital using the brand of the onetime photography giant, and is set to form part of a new digital rights management platform – is being sold by way of a Simple Agreements for Future Tokens (SAFTs), according to the paper.
It includes a long disclosure acknowledging that while WENN Digital is pitching the KODAKCoin as a so-called "utility token" – which would, at least in theory, keep it from being deemed a security by SEC standards – the U.S. regulator may make a different determination.
The firm wrote:
The disclosure is a notable one, given that the SEC is said to be probing SAFTs as part of a wider investigation into ICOs.
As it stands, the exact timeline of the sale remains unclear, given recent delays, and the white paper doesn't include any updates on that front.
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On the project's official website, a message dated February 5 states that "the ICO is moving full-speed ahead."
Kodak image via Shutterstock