Pocketful of Quarters, a startup which specializes in crypto-related gaming, has received a green light from the SEC. It is the first Ethereum token to not be considered a security—and created by a 12-year old, no less.
George Weiksner is the CEO of Pocketful of Quarters and he also happens to be only 12-years old. Already something of a legend in the cryptocurrency community, he recently made headlines for gaining approval from the SEC for his ‘Quarters’ token. The startup received a no-action letter from the SEC recently which means that it does not need to go through proceedings as a security.
Quarters is now the first Ethereum-based token to be approved by the SEC. That’s partly because Quarters is purely a utility token, intended to be used by players to buy game add-ons and trade items between games. The token is not to be used for speculative value and none of the earnings will go into ‘development.’ Instead, it’s intended to just be used to trade items in-game.
It’s a novel idea which could pave the way for other Ethereum-based tokens in the future. Although regulators and legal officials have long been skeptical of the ‘utility token’ concept, Quarters demonstrates that the SEC is actually open to the idea.
What’s most interesting of all is that this 12-year old kid, George Weiksner, may pave the way towards legal clarity on the security token issue. At the very least, it’s a step in the right direction.
Do you think that other Ethereum tokens could be considered securities in the future? Let us know your thoughts in the comments down below.
Image courtesy of Crowdfund Insider.