Developer of blockchain-based distributed applications, BlockMason has announced what may be the first SEC-compliant, public American ICO following the recent ruling by the Securities and Exchange Commission in the US. The ICO will be funding its product, the Credit Protocol, which democratizes credit creation through the creation, tracking, and settling of debts on the blockchain in all forms — from consumer loans to gift cards to university meal vouchers and other examples. BlockMason has released multiple working products and applications prior to the start of the token sale, which it believes gives it legal grounds for making their ICO open to purchasers in the United States.
According to former Department of Justice attorney Stephen Galebach, developers without market-ready products and services may sell only their ‘concepts and future hopes’, meaning their tokens are likely subject to securities law. However, companies like BlockMason with developed products, ‘are able to motivate purchasers by a desire to use or consume the products and services that are offered for purchase, licensing or token-based usage’.
CP Token holders may use their tokens to power applications of their own development, or in applications developed by other companies. BlockMason has recently released its first application built atop the Credit Protocol, Friend in Debt. While the Credit Protocol is a versatile platform for developers to build any variety of credit recording application, Friend in Debt is a simple and powerful program for tracking social debts among friends. Due to using blockchain technology, it is not restricted by borders, currency, or banking, and adds the ability to keep balances outstanding in addition to spot settlement.
Jared Bowie, BlockMason co-founder, stated: “Any company that opens an ICO, but does not offer their token for sale in the U.S. confirms their fear that their token is at risk of SEC regulation.”