Global blockchain software specialists Block.one has reached a civil settlement agreement with the US Securities and Exchange Commission (the SEC).
Under the agreement, Block.one will pay a one-time fine of US$24 million although the firm did not admit nor deny the SEC’s findings.
The case was in connection with the company’s sale of an ERC-20 token between June 26, 2017 and June 1, 2018; the settlement “resolves all ongoing matters” between the two entities.
Block.one issued a statement following the decision which read: “We are excited to resolve these discussions with the SEC and are committed to ongoing collaboration with regulators and policy makers as the world continues to develop more clarity around compliance frameworks for digital assets.
“The extraordinary success story of America is in part built upon its rich history of supporting entrepreneurship and emerging technologies, and we encourage and applaud the efforts of entrepreneurs and leaders from tech, finance, and other industries who are striving to make the U.S. an environment where technology can advance and thrive in a predictable and inclusive way.”
The settlement relates specifically to the ERC-20 token sold on the Ethereum blockchain during the aforementioned period, which is no longer in circulation or traded, and will not require the token to be registered as a security with the SEC.
The SEC has simultaneously granted Block.one a waiver meaning the company will not be subject to certain ongoing restrictions that would usually apply with settlements of this type.
Block.one believes the SEC’s granting of this waiver evidences the firm’s “continuing commitment” to compliance and best practices in the United States and globally.
Block.one’s statement continued: “Blockchain’s ability to better align organizations with their consumers, increase the transparency of critical database infrastructure, and better distribute value and wealth throughout society remains our company’s focus, and we will continue to fight for the development of our industry to achieve as much alignment around policy and best practices as possible.
“As always, we are humbled by, and thankful for, the community support that enables everything we do.”
