The U.S. Securities and Exchange Commission (SEC) approved the first ever Ethereum-based tokensale, The Block writes.
On Thursday, the corporate finance division published a letter of no action in which it announced that the startup Pocketful of Quarters (PoQ) can sell its ERC20-tokens without having to register them as securities.
"The division does not recommend that the SEC take enforcement action if PoQ offers and sells its Quarters tokens without registering them in accordance with Section 5 of the Securities Act and as a class of equity securities in accordance with Section 12(g) of the Exchange Act on the basis of an opinion that Quarters are not securities," said Jonathan Ingram, SEC's senior legal counsel for the SEC's financial services wing.
The letter also specifies a number of conditions, such as Quarters' tokens being immediately available for use in the company's gaming products after they are sold, and being made available to a limited number of developers and influencers.
This is the second such letter issued by the SEC to a project wishing to carry out a token, but the first one for an Ethereum token. In April, the regulator approved the TurnKey Jet campaign to sell TKJ tokens based on blockchain with limited access.