It seems like the regulated token trading is coming. Thus, Overstock's tØ is launching a first-of-its-kind alternative trading system (ATS) that will provide a platform for the exchange of cryptographic tokens categorized in the U.S. as securities.
As reported by coindesk.com, the new system is based on the already existing platform tØ in partnership with the fintech company RenGentt and Argon Group (an investment bank specializing in ICO capital raising). The ATS will be regulated by both the SEC and the Financial Industry Regulatory Authority (FINRA).
I think it's a historic event. We're opening a new type of capital market.
CEO of Overstock
Until now, there have been no such platforms, and its creation can be seen as a major step in the development of the entire cryptoindustry. Today, ICO issuers either must attempt to create a token that does not meet the SEC's definition of a security, or they must meet that definition and give up the liquidity that comes from being publicly traded. Emma Channing, Argon's general counsel and interim CEO, argues that the new platform announced today will eliminate that choice.
We believe this is exactly what the SEC was asking for in the DAO report.
Argon's general counsel and interim CEO
As detailed, Emma Channing believes her firm's new ATS could see $2 billion in trading within the next 12 months.