As Cointelegraph reported two weeks ago, the Securities and Exchange Commission put out a rare no-action letter in defense of IMVU’s new blockchain-based VCOIN.
VCOIN is only the third digital token to get such legal protection from the U.S. securities regulator, which makes it an exciting development. The SEC has been extremely active in punishing initial coin offerings that it views as unregistered securities offerings, but it has been more reluctant to define what does not count as a security — a problem that Commissioner Hester Peirce noted just last night. A no-action letter is, however, not the same as a rule from the SEC or a statute from Congress.