KODAKCoin Backers Warn SEC Could Restrict Token Trading
A new "light paper" says the token could face "significant restrictions" should the U.S. Securities and Exchange Commission (SEC) deem it a security.
A new "light paper" released for the forthcoming KODAKCoin sale states that the token could see "significant" trading restrictions should the U.S. Securities and Exchange Commission (SEC) deem it a security.
– which is being developed by a firm called WENN Digital using the brand of the onetime photography giant, and is set to form part of a new digital rights management platform – is being sold by way of a Simple Agreements for Future Tokens (SAFTs), according to the paper.
It includes a long disclosure acknowledging that while WENN Digital is pitching the KODAKCoin as a so-called "utility token" – which would, at least in theory, keep it from being deemed a security by SEC standards – the U.S. regulator may make a different determination.
The firm wrote:
The disclosure is a notable one, given that the SEC is said to be probing SAFTs as part of a wider investigation into ICOs.
As it stands, the exact timeline of the sale remains unclear, given recent delays, and the white paper doesn't include any updates on that front.
On the project's official website, a message dated February 5 states that "the ICO is moving full-speed ahead."
Kodak image via Shutterstock
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