Entrepreneurs are beginning to doubt whether the crypto tokens can be used at all in the United States.
Actually, according to Simar Managt who is the co-founder of distributed video streaming startup, Stream, the present-day environment of regulatory ambiguity as well as the rumors of subpoenas are quite a pinch on the projects that majority of the people think of moving elsewhere.
However, even though that has not transpired yet for the Silicon Valley-hatched startup, the danger of regulatory action is drastically leading it to the renovation of its product roll-out.
On Tuesday, the Stream announced releasing of a white paper which outlines the distribution of its token, but the process is still on hold until the team knows how the United States regulators will authorize its tokens for used.
The Stream that launched in October had planned to give the live streamers, online video makers as well as vloggers a means of breaking platform lock-in through creation of Chrome extension that allowed fans to tip creators wherever a video appeared, but the firm now says the whole of their project has now been put to question.
Stream’s challenge is that its strategy heavily based on using the so-called utility token that fuels a distributed network. Not only that but the ability of tokens to be distributed and traded quick and easily and converted to fiat currency making them perfect for Stream’s business plan.
And this fitted with general industry thinking until very recently.
In 2017, startups supposed that a utility token would be good to issue provided the platform eventually went live. Even then, many questioned if they could be sold before launching of the platform to the non-accredited investors, but then startups have started canceling public sales in the midst of the uncertainty.
Now, Stream’s counsel is questioning if any tokens whatsoever can be circulated in the U.S. without the full registration with the know-your-customer (KYC) and anti-money laundering (AML) of anyone holding them, or if Stream tokens must now be registered as securities.
However, if Stream cannot use its token, it raises questions about whether or not the corporate can do something in any respect.