SEC issues a no-action letter to a gaming startup launching tokens on Ethereum

The SEC has issued a no-action letter to Pocketful of Quarters (PoQ), a gaming startup looking to issue tokens on Ethereum. PoQ may legally sell its Quarters tokens to consumers without registering them as securities. In the July 25 letter, Jonathan Ingram, chief legal officer for the SEC’s FinHub wing, wrote:

“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.”