SEC Announced That There Will Be “No Action Taken” Against PoQ

If you haven’t been following the latest cryptocurrency news, there is a gaming rewards company that is in the focus – known as Pocketful of Quarters (PoQ). The company was investigated by the regulatory body in the US, after which SEC announced that there will be “no action” taken against it.

As the official post showed, the “no-action” notice is given to the token seller. In it, Jonathan Ingram who is the chief legal officer for the SEC’s FinHub wrote:

“Based on the facts presented, the Division will not recommend enforcement action to the Commission if, in reliance on your opinion as counsel that the Quarters are not securities, PoQ offers and sells the Quarters without registration under Section 5 of the Securities Act and does not register Quarters as a class of equity securities under Section 12(g) of the Exchange Act.”

The SEC announced that no action will be taken against PoQ – which means that gamers can continue to use the platform to purchase tokens using USD or ETH and the tokens called “Quarters” can become transferable between different games. This way, users won’t have to “cash out” when they want to play new games and can bring their winnings with them.

However, the coming altcoin news showing that SEC announced a “no-action” notice does not mean that there won’t be rules in this manner. In order to maintain their status as a non-security, the gaming platform must adhere to a lot of rules and strict guidelines.

The SEC announced a strict set of guidelines which were featured on many best cryptocurrency news sites. They are as following:

• “To create an Approved Account, Developers and Influencers will be subject to KYC / AML checks at account initiation as well as on an ongoing basis;” 

• “Quarters will be made continuously available to gamers in unlimited quantities at a fixed price;” 

• “PoQ will not use any funds from Quarters sales to build the Quarters Platform, which has been fully developed and will be fully functional and operational immediately upon its launch and before any of the Quarters are sold;” 

• “PoQ will market and sell Quarters to gamers solely for consumptive use as a means of accessing and interacting with Participating Games.”

With this, we can finally get an idea of how the SEC separates securities from utility tokens. The most interesting part is that the Pocketful of Quarters (PoQ) company has a 12-year-old CEO who seems optimistic about the future.

"My hopes and dreams are that this would be widely adopted by players and make games better for everyone. I don't want other people to have to have their coins stuck in games." – George @thiskidceo #TheStruggleIsReal https://t.co/12hrz6X1Gv pic.twitter.com/8ANrvr6BRR

— Pocketful of Quarters (@BuyQuarters) November 19, 2018