More ongoing regulation activity primarily focused on crypto currencies. That article shows that they are still trying to create a structure for this segment. The company admits that they developed the patent and trading platform product before the SEC 'adopted rules or regulations specific to the digital securities industry nor any regulations involving blockchain or distributed ledger transactions' The wheels of government turn very slowly and it would appear that they are just getting started. The pro-crypto bill is one of at least 50 floating around Congress since 2022, which has been hamstrung in 2023 without a speaker in the House of Representatives.
The bill covers an array of actions the commerce secretary must take if passed, including making best practices, policies and recommendations for the public and private sector when using blockchain tech.
Our first regulatory challenge is seeking the approval of the Securities and Exchange Commission (“SEC”) of our concept for a security that could be traded on the BDTPTM because the SEC has not yet adopted rules or regulations specific to the digital securities industry nor any regulations involving blockchain or distributed ledger transactions. The SEC has chosen to enforce its existing anti-fraud laws and the registration rules and regulations. Accordingly, we must work through an undefined SEC approval process for our proposed system. We anticipate many comments and questions from the SEC during any approval process for the BDTP platform. We anticipate that could take one to three years to complete the approval process for the BDTP platform.
What is funny is that the cryptocurrency segment using this blockchain technology have lawsuits against the SEC because the SEC has taken the view that 'crypto assets are securities' and must comply with securities laws. The SEC is suing these cryptocurrency companies because they are not in compliance with the current rules. Guess what, what BlackStar is squarely in the actual regulated securities space and are also currently not in compliance mostly because the rules are yet to be established. Digital-asset cryptocurrency issuers may get an exemption from securities laws but you can bet a company dealing with actual securities will not.
https://cointelegraph.com/news/blockchain-promoting-bill-passes-us-house-committee The act, however, isn’t seen as being among those having a potentially major impact, such as the Financial Innovation and Technology for the 21st Century Act, which would affirm a process for the contentious issue of labeling cryptocurrencies as commodities or securities and clarify regulator jurisdictions.
“With the SEC taking a strong enforcement agenda, there is no question that firms have to take the view that crypto assets are securities and platforms that exchange these assets have to accept that.”
New legislation would grant digital-asset issuers an exemption from securities laws if they meet certain conditions and would exclude digital commodities and payment stablecoins from the definition of a security under the securities laws, among many other provisions.
Regulatory Challenges of our Business Concept (BDTPTM)
BlackStar has always recognized that digital equities must be registered or otherwise have an exemption from registration within the existing SEC regulations and guidelines. BlackStar’s aim is to develop BDTPTM, a digital share trading platform, to trade free-trading BlackStar common stock only. The regulatory challenges presented come from integration of the platform into the existing broker-dealer ecosystem, approvals/advice of and compliance with the rules and regulations of OTC Markets Group, SEC, FinCen, IRS, anti-money laundering rules, or FINRA. These rules encompass the functionality of the system, cybersecurity laws, and state and federal financial laws. No assurance can be given that such regulatory approvals will be obtained in a timely manner or at all.
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