Sep 8, 2023

SOMA Finance, a joint venture between MANTRA and Tritaurian Capital, is gearing up to offer the first legally issued and compliantly structured digital security to global and U.S. retail investors.

Video transcript

The state of crypto is presented by Tron connecting the world to the power of Cryptocurrency. All right. So a finance is gearing up to offer the first legally issued and compliantly structured digital security to global and us retail investors. Joining us now to discuss is so a finance co-founder and co CEO CEO Bill Hein Bill. Welcome to the show. Good morning, Jen. Thank you. All right, let's talk about. So, a finance, this is a joint venture between mantra and tractor capital, briefly tell us about how SOMA came to be what the mission is and what's going on here. Sure. So, um Cian Capital, which is the broker dealer behind. Uh So a finance which does all the regulated activity. Um It's been around forever. Uh We got involved in the um the crypto world about five or six years ago and at that time, we met the guys from mantra. Um And an event really quickly at the beginning saw that crypto was a huge uh potential benefit but also had some serious, serious risk uh in terms of compliance. Um most notably that all of these tokens out there really are securities. So we embarked on a mission. Uh It's been several years to get the proper approvals from the US regulators and to build a proper technology to actually um be able to offer a decentralized type of uh trading platform. Uh but do it legally compliantly and within the regulations of the United States bill, what regulators are you uh working with uh primarily with uh and the SEC? Um they've been great both of them. Uh we do a little bit with the States as well, but, uh, it's a, it's a process and, you know, finance is important and dangerous if you do it wrong. So, doing it the right way with F and the SEC is absolutely great. Now, are you 100% sure you're allowed to operate? Because my guess is the SEC was probably difficult on this, weren't they? II I mean, like, are, are you 100% sure? Did you, have you, like, called them up before and said, look, we're about to do this. Are you ok with us doing this? And they said, ok, so it's, it's an ongoing process. Um, it's multi stage. We're, it, it's, it's not a, it's not a put the switch and you go, um, you, we always speak with the SEC, we always speak with to make sure that everything we do is compliant as we stage out through this. Um, those talks are ongoing. Um, and they will continue to go as long as we're operating that. It's, it's not a, uh, get your pass and forget about them. You, you talk to them pretty close that said they still, I, I, I'm still kind of, it, it, it almost sounds like, uh, that, you know, it's, it's better to ask for forgiveness than permission. And in that, in that response, II, I just kind of want to get a sense that like anybody who's, who's working with you on this, they can, they be certain that the SCC won't uh take uh a measure against you uh in the process because obviously this is, this is a worry like I don't worry right now if I buy stocks on the IC, if I buy stocks on NASDAQ, that the SEC won't close down nice or NASDAQ anytime soon. But I do know that, that the SEC has gone after coin base, they've gone after crack and they got or whatever. They, they've gone a after a bunch of people and they, they say this is securities, you're not licensed, you're not able to do this. How certain am I that if I'm dealing with? So that the sec has said, ok, you guys can operate? Sure. So first the SEC does not ever says that you can operate, they just stop saying don't operate um just to be clear. Um But the reason you can be, be confident is that we have Victorian capital, which is the dealer. It's, we are licensed, we're approved to do certain business lines. We're, and we're, we're getting warmer as we speak. So, um, to answer your question about, are you sure, um, you will, you can be sure that we will never do anything or enter a business without having done the proper checks with all of the regulators involved. Now, can I predict the future and say the SEC will never worry about anything we can do know. But, uh, that's the same with New Stock Exchange. In fact, if they something that the regulators would come in and do their best to fix it, um, so you can absolutely rest assured that we will never do it. We soma or try to, will never do anything that hasn't been properly vetted and checked with the regulators. That's just not the way we operate. On that note. I think it's probably important to kind of differentiate SOMA from some of the entities that the SEC has gone after Lawrence just mentioned Coinbase Binance crack in. They also mentioned um, a handful of tokens in those lawsuits. How is so a different than some of the tokens that were mentioned in the lawsuits and also uh those firms. So, um, so is different because we built it to be compliant from day. Um, in addition to being an investment banker and multi compliance officer, so I built this, we built this system exactly as I'd like to see it as a compliance officer. So one of those things is, we never sat down and said, how do we try and make the SOMA token? Not a security. It just is a security and it's been a security since day one. So we go into the RCF offering, you know, I'm required to say things like, uh, you know, as I said here, I'm not made soliciting or offering to buy tokens or sell tokens. They'll only be sold after we, uh, make filing with the EC and so on. So, so that's the real difference. You're never gonna see some over or try to win coming out and saying this is why this isn't a security. It's just our securities. The SOMA token will be a non participating, non cumulative participating word stock by Soman company. So you have to file an S one, you have to file like how does this work? You file 10 K's 10 Qs. What are you filing here on a regular basis? So for CRCF, which is red crowd funding, we will file for C, um which is a little bit different than an S one and S one is from a filing on exchange from the public IP F four C is a uh sort of a, a mixture in between one and say RD filing. Uh It's got a good bit of information in it. Um It will have reviewed financials which are critical, but, you know, most importantly, we won't start this offering until that is filed, which is part of the rule and, you know, doing it way is how we keep ourselves out of trouble. The sec told you guys to file it that way or, or are you guys taking a shot with it? If the rule I, it, the, the rules are pretty clear. Uh, if you want to do a regulation crowd funding, often you have to take steps A B and C and get to the end. And, uh, you know, obviously we're not making this up. There's, we're following the laws and rules and they're, you know, it, it, they're written in ways that, you know, to a person seem confusing, but once you actually read them, they're pretty clear, take steps a then take step B and get through the pre given the fact that you found, um, the process to be clear. If you take your time and read the, read the information that's out there, why do you think it's been so difficult for many in the industry who have been so outspoken about how difficult it is to navigate the regulatory space? Why do you think that's been so difficult? It sounds like it's been a pretty smooth process for you. Smooth as it might be a bit of an overstatement. The difference is, it's not, it's not hard, it's just, it's, it, it is hard, it's difficult. There's a lot of hoops you have to jump through to make things the right way. Um And these are all in place to protect investors. So for example, getting our financials reviewed, it wasn't charred, but it took time and effort and money. Um But the reason you do that is so that when investors see these financials, they know that an auditing firm is renewed. Um So I, you know, I don't feel like to speak about others and what they've done or haven't done. Um But the, the, the I would say that people are confusing, unclear with difficult. Um, and just because something is difficult, doesn't mean it isn't clear. Do you, do you think that the rest of the crypto industry is perhaps uh incorrect in saying that there needs to be regulatory clarity? Do you, do you feel that there is regulatory clarity from the SEC? Um, I do, um, in, in the space that we're playing in, we are playing in securities that just happened to be represented by Blockchain tokens. And the, uh, the regulations on securities were very clear. You start in 1933 and move. Um, could there be some clarity around some of the, you know, the fringe assets that are, um, in between securities and commodities? Uh, possibly, but really the truth is that most of these regulations are in place, they've been in place for quite some time. And again, iii I think unfortunately some people, sometimes people confuse, um, difficult with unclear and say, well, you know, it's not easy to file these properly. But you have to file them properly or else they're, they're not in, in, in compliance with the regulations bill before we go tell us about the Token. I know there are some token holder benefits here. What once the Token is launched? Uh, what, what can people expect? What are the benefits for token holders? So, um, again, you know, we're not, not launching it yet. We will. So we're not soliciting anything today and please don't send any money yet. Um So we'll file the RC. Once we do that, we'll launch the offering, it will all be done through the, so a platform which is a technology platform effectively. Um But as I said earlier, the tokens actually represent um non cumulative participating third stock in. So a finance, they are a real financial instrument of the company which is very, very different than most crypto tokens out there. Um So there are, there are certain rights, there are shareholder rights, there are encased in a document that document lays out certain parameters. Uh One of which is um token holders will have the right to receive to 10% in dividends. Um you know, as, as declared by the board of directors, but you know, that's, and that's the upside. The, the downside is that this is not something that just disappears, it's a financial instrument of the company. So, unlike many crypto tokens, we can't just walk away from this one. Not we, you know we ever, but this is a true financial instrument of the company. Um And so the benefits would be effectively sharing on the outside of some finance, just like if you bought a preferred stock in one of the big companies with the right bill. Thank you very much for joining the show this morning. We hope you have a great Friday and a great weekend too. Thanks Jen. Thanks Lawrence. I appreciate you having me on. Thank you. That was so a finance co CEO bill. He.

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