The Monetary Authority of Singapore indicated in response to a question from the Singapore Parliament that cryptocurrencies have evolved into “second generation tokens” that represent “benefits such as ownership in assets, like a share or bond certificate.” Accordingly, said MAS, initial coin offerings involving such tokens “must comply with existing securities laws.” (Click here for background in the article “SEC Begins Proactively Suggesting Some Promoters Halt ICOs; the UK Financial Conduct Authority Joins Worldwide Regulators Saying that Digital Tokens Issued as Part of ICOs May Be Securities” in the September 17, 2017 edition of Bridging the Week.)

Separately, REX Shares LLC withdrew its application to the US Securities and Exchange Commission to qualify two Bitcoin-related exchange-traded funds. According to a letter submitted to the SEC by Rex, the withdrawal was prompted by SEC staff’s view “that it is the Commission’s policy not to review a registration statement for a fund where the underlying instruments in which the fund intends to primarily invest are not yet available.” (Click here to access letter.) Two weeks ago, Grayscale Investments LLC announced the withdrawal of its application for approval from the SEC for its Bitcoin Investment Trust. Grayscale had hoped to list its trust on NYSE Arca. (Click here for background in the article “SEC Files Lawsuit Against Companies and Backer for Purportedly Fake Initial Coin Offerings” in the October 1, 2017 edition of Bridging the Week.)

Finally, last week, the SAFT Project introduced a white paper and a standard form to support presales in advance of initial coin offerings. The standard form is known as the Simple Agreement for Futures Tokens. The SAFT is an investment contract subject to applicable securities laws that, in the United States, contemplates an initial sale to accredited investors. (Click here for background.)