Medadyn, a new utility token specifically designed for use in the media and entertainment industry, has asked the SEC for a review of the positioning of its Initial Coin Offering.
Medadyn recently delayed its March ICO until May 2018 to ensure compliance with shifting regulations within the cryptocurrency market, globally and domestically.
In a letter sent to the SEC, the company has asked for a thorough review of its offering prior to the company’s ICO. It has request that SEC’s Division of Corporation Finance review its position papers, legal and accounting opinions from sources internal and external to the company, and any offering documents, to ensure compliance with the SEC and applicable securities laws.
The company is also requesting the support, input and oversight of several members of Congress including key Senators sitting on the Committee of Commerce, Science and Transportation, the Committee on Banking, Housing and Urban Affairs, and members of Congress sitting on House Energy and Commerce Committees and the House Financial Services Committee.
Medadyn, a wholly-owned subsidiary of Reedeux Media, is creating a new vehicle to finance projects within the media, music and entertainment sectors. The Medadyn MDA token’s initial use is to provide accredited investors and financial institutions a way to seamlessly finance media projects and broadly market these projects globally.
Its request comes shortly after the SEC has indicated that many tokens, cryptocurrencies and exchanges meet the government’s definition of securities. Federal Judge Jack Weinstein of the U.S. District Court for the Eastern District of New York also recently ruled cryptocurrencies as a “commodity”.
“Reedeux Media’s position for its Medadyn MDA token is that it is a utility token that may have securities usages,” said John C. Dong, Medadyn’s CFO. “The token has been structured to conduct monetary and non-monetary transactions within Reedeux and other media platforms. For instance, it can be used to purchase goods or music, pay suppliers or as a part of reward system. However, part of its initial launch will also include a method for the financing of media and merchandising. This financing method is an automation of asset-backed lending. The company’s view is that this specific usage of the MDA token may in fact be a security and therefore formal registration or exemption may be required with the SEC for these specific project financings.”
Earlier this month, the Securities and Exchange Commission (SEC) filed a fresh warning to investors about unregulated cryptocurrency exchanges. Despite many online trading platforms appearing to investors as SEC-registered and regulated marketplaces, the SEC stressed that some are not. Simply referencing the term exchange can provide a ‘misrepresentation to investors’ that a platform meets regulatory approval.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
