SEC issues no-action letter for Ethereum token "Quarters," what it means for crypto

In a step forward for crypto regulation, the Securities Exchange Commission granted no-action relief to Pocketful of Quarters for its Ethereum ERC-20 token "Quarters"-assuring the startup that the Commission will not take enforcement action.

Pocketful of Quarters is a blockchain startup headed by CEO George Weiksner, age 12, and his father, PoQ's CTO, Michael Weiksner.

SEC issues second-ever no-action letter for a token seller.

Pocketful of Quarters argued that gamers on the platform have no such expectation, in addition to many other non-security-like characteristics of the token-and the SEC agreed, granting no-action relief.

The letter is a 'go-ahead' for PoQ's token issuance and represents a positive step for crypto-regulation in the U.S.Facts and circumstances behind "Quarters".

PoQ relies on the blockchain to provide transparency into its ERC-20 "Quarters" token.

Unlike most coins, Quarters cannot be resold or transferred outside of PoQ's closed platform and cannot be traded freely between players.

Quarters will not be used to fund the development of PoQ's platform.

According to PoQ, Quarters will be immediately available for use on 30 or more games.

Quarters share little in common with most regularly traded cryptocurrencies.