BAT Team ‘Not Concerned’ Over SEC’s Howey Test - Brave CEO
- The United States Securities and Exchanges Commission has already begun to take action in regards to the initial coin offerings in 2020.
- The CEO of Brave, Brendan Eich recently spoke on Basic Attention Token and how it would face the Howey Test.
The United States Securities and Exchange Commission has already begun to take action in regards to initial coin offerings in 2020. The first move this year was to charge a convicted criminal for conducting a fraudulent ICO with a fake identity - it was one that raised over $30 million according to the official website. However, the most recent action was reported earlier this month (21st January) on a day when the commission charged the blockchain-based B2B market Marketplace, Opporty International for conducting once again, a fraudulent ICO. Such an ICO raised $600,000.
Even though the commission ended up taking action recently, there are some commentators in the space that are expecting big projects to face scrutiny for playing out an initial coin offering. This is similar to EOS, as an example. According to a report by Messari, it claims that the coins could face a similar fate of that of Basic Attention Token (BAT), Cosmos and Tezos, going on to say that they could expect leniency in the matter.
The CEO of Brave, Brendan Eich recently spoke on Basic Attention Token and how it would face the Howey Test. This was a test used by the securities commission in order to determine whether or not a token can be classed as a security. In response to this, the CEO said that the team doesn’t have any concerns as they followed all the rules present at the time of sale. Furthermore, they’ve never had any problems and ever since, they have been compliant.
Speaking on the securities commission action against the Kin initial coin offering, he stated that the team behind the project, Kik Interactive got into some significant trouble. This was because the team didn’t actually respond to the July 2017 report by the SEC and didn’t take it into account in their latest sale.
“We don’t have concerns but I’m not going to play lawyer on your show because I think that would be bad for me and for the listeners and I need to be paying a lot more if I were a lawyer.”