a16z Crypto released 5 rules for token issuance, including not selling tokens publicly in the U.S. for fundraising purposes

ChainCatcher news, a16z Crypto stated today that the tension between blockchain builders and the U.S. Securities and Exchange Commission (SEC) seems to be overly strained. The SEC believes that almost all tokens should be registered under U.S. securities law. Blockchain builders find this absurd. Despite the differences in opinion, the fundamental goals of the SEC and blockchain builders are aligned, namely to create a fair competitive environment.

Web3 builders have the responsibility to demonstrate that the methods of the blockchain industry are effective and worthy of consideration. Web3 projects must strive to operate within the existing guidelines, from the digital asset framework released by the SEC in April 2019 to the latest rulings regarding enforcement actions against Coinbase.

It is reported that projects can start with the following five token issuance rules:

1. Do not publicly sell tokens in the U.S. for fundraising purposes;
2. Make decentralization the direction;
3. Communication is everything, and self-management accordingly;
4. Be cautious about listing on secondary markets and pay attention to liquidity;
5. From the date of token issuance, always ensure that the token lock-up period lasts for at least one year.