The SEC has unveiled a comprehensive guideline to clarify whether or not any specific crypto is to be considered a security. They also ruled that an airline’s rewards program token is not a security and can continue to operate, the first time they have done so for a crypto asset.
For the first time ever, SEC has found that a utility token is not considered a security. For those of you who are new, and have no idea what this is – you just need to know that this is a big deal.
The TKJ token is new and not so popular and has been designed by a private jet operator called TurnKey Jet as a sort of rewards program that allows their clients to pay for services with crypto. The SEC has now declared that this project has not violated any securities laws and may continue their offering without regulatory oversight.
The regulator has also now put out a comprehensive guideline designed to clarify whether or not any specific crypto is to be considered a security token or not.
Each utility token is set up quite differently and the SEC has decided to treat each one according to its merits on a case by case basis.
This might definitely take a while.