Overpot subsidiary T0 has built a trading platform for regulated ICOs

US retail giant Overstock.com has been waiting for the Securities and Exchange Commission (SEC) to the world to reveal when the encryption token will be regarded as securities.

Since 2014, the company has been committed to establishing a regulated and block-chain-backed stock exchange to sell eligible meta-currency securities, and even the company last December in the sale of the first Encrypted securities subject only to SEC.

This is a historic moment, but maybe a little ahead. Since the sale of the company's own stock on the platform to raise $ 1.9 million, and did not hear any other company want to follow suit.

T0 founders hope that this model may become the beginning of a new era of block-chain securities, but it is known as the initial digital tokens issue (ICO) this rapid development of emerging concepts.

Not the kind of company in the custody of the SEC to raise funds under the company, ICO was originally expected to replace the same platform as t0 and regulatory providers. All in all, the potential subversion is that it is subversive by the unpredictable technical leap.

T0 President Joseph Cammarata said to CoinDesk:

"When these ICO projects began to suddenly succeed, we were somewhat upset, they were not approved, and this was a western pioneer, and we had a long effort on our ICO ... but we delayed our ICO, embarked on the road to regulation.

Then, early last week, t0 finally got the news that it had been waiting for, and the SEC finally announced a landmark report that clearly stated why some of the tokens were still a reasonable basis for securities.

In addition, the report clarifies that once the tokens issued in the ICO are treated as a security, only the national stock exchanges such as the Nasdaq and some alternative trading systems (ATS) can participate in the transaction.

Cammarata said it was the report of this, so t0 hope to find it has been waiting for the opportunity.

Intercepted from SEC report:

"Any entity or individual engaged in an exchange activity must be registered as a national stock exchange or may be exempted from such registration for business activities."

Block chain ATS

T0 in August 2015 debut Nasdaq, Overstock.com founder Patrick Byrne said it is committed to making it a Wall Street platform.

For a long time, Byrne has always been the "naked short selling (naked short selling)" the victim of this practice, and the so-called naked short sellers are not investors to borrow stocks directly in the market to sell stocks that do not exist, And when the share price fell further to buy back the stock to obtain profit-making investment, so he began to use the chain chain to replace those who impede the buyer and the seller direct trade.

But as a subsidiary of Overstock.com, a publicly traded company, and itself is also the victim of the so-called naked short selling plan, Byrne must disintegrate the system from within.

Following a series of acquisitions of Overstock, t0 received the ATS license, which all companies were eager to acquire, and a number of potentially valuable relationships with national stock exchanges and seller management systems.

So, back to December 2015, it was also the same regulatory body that announced its guidelines earlier this week, which approved Byrne's lawfully issuing block-chain securities.

Cammarata joined the company after its stock exchange delivery company SpeedRoute was acquired by Overstock, he said: "Our identity is unique because we have been approved as ATS."

He continued:

"We are also integrated into every American equity exchange, so when we want to trade in a country exchange, we are already linked to each other."

Regulated ICO

Since Overstock has sold its first chain-only stock that is regulated by the SEC, the idea of ​​removing brokers from the existing financial model has grown even if it is slow to grow.

In March 2017, Blockchain Capital announced the use of the same JOBS Act exemption clause referred to in the SEC report to initiate its own compliance ICO and eventually finance its $ 50 million Of $ 10 million through the sale of tokens of securities to raise.

According to Andrea Tinianow, founder and head of the state-based Delaware block chain program, one of the possible reasons for the relatively small capitalization of the compliance block chain is that it is uncertain to record on a distributed ledger The legitimacy of stock ownership.

Using the technology developed by T0's parent company last week, developed by Symbiont in New York, Delaware has signed a series of amendments, Tinianow said it will remove many uncertainties for companies incorporated in the state factor.

"We have already got a regulatory framework for stockpile stock stocks, and now the SEC has also given the federal government's guidelines," says Tinianow.

A number of sources have confirmed that there are "dozens of" ICO is committed to carrying out compliance projects, but the investment time to market about six months to a year.

For companies that want to do this kind of financing, Cammarata says that as long as these companies are willing to do some errands, t0 can provide its own ICO technology.

He said: "We are ready to take over these companies today," and concluded:

"If they have been approved by appropriate regulatory channels."