🏛 SEC issues no action letter for TurnKey Jet token
The U.S. Securities and Exchange Commission (SEC) has issued a no-action letter for aviation service TurnKey Jet's Jet Token allowing the company to sell tokens without registration under the Securities Act and the Exchange Act. In reaching the decision the SEC noted that:
- The company will not use funds from the sale to develop the platform, as all parts will be operational when the tokens are sold.
- Tokens will be immediately usable for their intended functionality.
- Tokens will be restricted to TurnKey Jet wallets only.
- Tokens will be sold for one USD per token and will represent one USD of service.
- If TurnKey Jet offers to repurchase tokens it will do so at a discount to face value of the tokens
- The token is marketed in a way that emphasizes the functionality of the token, and not the potential for an increase in value.
The SEC also released a Framework for investment contract analysis of digital assets which is meant to help companies understand when tokens should be registered under existing securities laws.
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