The U.S. Securities and Exchange Commission's Division of Corporation Finance issued a no-action letter on Wednesday to a social media company that wants to sell an in-house, Ethereum-based token.
The letter, dated November 19, is addressed to IMVU, Inc., which offers an array of social-focused virtual worlds. It notes;
"Based on the facts presented, the Division will not recommend enforcement action to the Commission if, in reliance on your opinion as counsel that VCOIN is not a security, IMVU offers and sells VCOIN, which is transferable both on and off of IMVU’s platform, without registration under Section 5 of the Securities Act and does not register VCOIN as a class of equity securities under Section 12(g) of the Exchange Act. Capitalized terms have the same meanings as defined …