GEORGE TOWN, Cayman
Islands, May 26, 2020 /PRNewswire/
-- For many years, while much of the world took a different
stance on the revolutionary fundraising mechanism that is
tokenization, many of the lead regulators in the United States maintained that there was no
such thing as a utility token and that all tokens were securities.
While the Levolution platform will revolutionize token offerings
for companies located and transacting business outside of
the United States, the team
remained hopeful that American companies would be able to harness
the platform's ingenuity in the future.
Finally, in 2019 the United States Securities and Exchange
Commission (the "SEC") issued two responses not recommending
enforcement action to the Commission. At last, it seemed as if
the United States would align its
view with both logic and international consensus. However, a new
Miami, Florida-based project
seeking, but unable, to utilize the Levolution platform for
altruistic purposes has brought to light how impractical the
regulatory framework and process remains.
The Rescue Token team, confronted with the COVID-19 pandemic,
sought to address the cash flow issue faced by restaurants during
the quarantine by allowing loyal customers of those restaurants to
buy tokens, resulting in immediate cash flow to the restaurants.
Aside from a small and transparent portion of the token purchase
intended to cover the company's administrative and operating
expenses, almost all of the funds would go immediately to the
restaurant with which they could pay expenses. The token purchaser
would receive credit to the restaurant, to be used immediately if
the restaurant was open for takeout during the quarantine or
immediately upon opening after the quarantine, all while being able
to help one of their favorite restaurants in an industry that is
suffering extraordinarily.
While the team thought that a clear utility was present in line
with the SEC's no action recommendations, as did external lawyers
with which the team consulted, everyone agreed that a letter to the
SEC and a legal opinion was prudent. First, time was of the essence
given the project's nature, so a missed opportunity arose due to
the timing inherent in the legal obstacles even though the
technology was developed. Next, outside counsel estimated a legal
budget as much as $50,000.00 due to
the uncertainty inherent in the regulation; a number that
ultimately made this project infeasible due to budget
constraints.
The Rescue Token project hopes to repurpose the technology they
developed, but which can not yet be used. They, along with
Levolution, hope that this missed opportunity will shed light on
this issue and spur the development of a clearer American
regulatory framework so that companies in the United States can offer true utility
tokens without having to incur unnecessarily burdensome legal fees
for work bearing uncertain probabilities of success.
Media Contact:
Marquese Dillon
Email: Marquese@Levolution.io
levolution.io
Related Images
the-rescue-token-would-have.jpg
The Rescue Token Would Have Provided a Mechanism for Restaurants
to Survive Through COVID-19
One hand passing a bitcoin on to another.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/united-states-regulatory-uncertainty-continues-to-prevent-american-companies-with-clear-token-utilities-from-harnessing-levolutions-technology-301065686.html
SOURCE Levolution