On September 18, 2017, The Chamber of Digital Commerce announced the formation of the Token Alliance, created to guide companies through the process of crowdfunding with token offerings.
Providing leadership for the Token Alliance are both Dr. Jim Newsome of the US Commodity Futures Trading Commission and Paul Atkins, former US Securities and Exchange Commissioner. Together, they join over 70 organizations working to wade through regulatory uncertainty by recommending legal frameworks. Some of the alliance members include Alluminate, AlphaPoint, Bankcoin.global, Blake, Cassels & Graydon, Bloq, CMT Digital, Cognizant, Cooley, Crowell & Moring, Elliptic, Gem, Hashed Health, loyyal, Microsoft, Netki, Node40, Parsons & Whittemore, Perkins Coie, Polsinelli, Qtum, Reed Smith, Rimon Law, Rivetz, Steptoe & Johnson, t0, and Tally Capital.
“With the SEC’s recent findings regarding ICOs, combined with the CFTC’s determinations and enforcement, it is clear that proactive industry efforts are imperative and timely,” said Newsome, describing the regulatory landscape. “I look forward to helping shape the dialogue and enable this innovative technology to progress for the benefit of industry and consumers.”
As a consortium encompassing blockchain innovators, the Token Alliance will attempt to position itself as an industry leader, providing a helping hand for blockchain startups who wish to remain compliant with laws as they develop. Regulators have taken notice of token offering-based crowdfunding, which was responsible for $1.5 billion in capital during 2017.
Atkins expressed a necessity for the guidance the Token Alliance seeks to provide:
“The Token Alliance will serve a much needed role in helping the industry establish for itself appropriate guidance for this new and exciting asset class. I’m thrilled to be a part of this initiative and bring my service as a former securities regulator to help foster this ecosystem.”
The Token Alliance welcomes participants with blockchain, legal, advisory, or technological expertise and invites those interested to reach out.
Perianne Boring, founder and president, Chamber of Digital Commerce, described the protections that regulations can potentially grant to participants while fostering blockchain sector growth:
“As with all new technologies, it is important to set appropriate guidelines to curb potential abuse, while protecting innovation. We look forward to working with our members to continue to promote and advocate for the power of the blockchain.”