Developer of blockchain-based distributed applications, BlockMason has announced what may be the first SEC-compliant, public American ICO following the recent ruling by the Securities and Exchange Commission in the US. The ICO will be funding its product, the Credit Protocol, which democratizes credit creation through the creation, tracking, and settling of debts on the blockchain in all forms — from consumer loans to gift cards to university meal vouchers and other examples. BlockMason has released multiple working products and applications prior to the start of the token sale, which it believes gives it legal grounds for making their ICO open to purchasers in the United States.
According to former Department of Justice attorney Stephen Galebach, developers without market-ready products and services may sell only their ‘concepts and future hopes’, meaning their tokens are likely subject to securities law. However, companies like BlockMason with developed products, ‘are able to motivate purchasers by a desire to use or consume the products and services that are offered for purchase, licensing or token-based usage’.