Difference between revisions of "Utility token"

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A utility token is a [[digital asset]] which gives the token holder access to services or products provided, usually, by the token issuer. U.S. regulation does not provide a safe harbor for utility tokens from the [[U.S. Securities and Exchange Commission]]'s rules on securities issuance and trading. Some regulators have taken the position that a utility token is "just another form" of [[security token]].<ref>{{cite web|url=https://www.forbes.com/sites/astanley/2018/04/28/sec-official-offers-new-hope-for-utility-tokens-in-congressional-testimony/#161836bdfcf9|name=SEC Official Offers New Hope For Utility Tokens In Congressional Testimony|org=Forbes|date=October 9, 2018}}</ref><ref>{{cite web|url=https://medium.com/@bonpay/security-tokens-vs-utility-tokens-1aa7531aabe8|name=
 
A utility token is a [[digital asset]] which gives the token holder access to services or products provided, usually, by the token issuer. U.S. regulation does not provide a safe harbor for utility tokens from the [[U.S. Securities and Exchange Commission]]'s rules on securities issuance and trading. Some regulators have taken the position that a utility token is "just another form" of [[security token]].<ref>{{cite web|url=https://www.forbes.com/sites/astanley/2018/04/28/sec-official-offers-new-hope-for-utility-tokens-in-congressional-testimony/#161836bdfcf9|name=SEC Official Offers New Hope For Utility Tokens In Congressional Testimony|org=Forbes|date=October 9, 2018}}</ref><ref>{{cite web|url=https://medium.com/@bonpay/security-tokens-vs-utility-tokens-1aa7531aabe8|name=
 
Security Tokens Vs. Utility Tokens|org=Medium|date=October 9, 2018}}</ref>
 
Security Tokens Vs. Utility Tokens|org=Medium|date=October 9, 2018}}</ref>

Latest revision as of 15:27, 30 May 2019

A utility token is a digital asset which gives the token holder access to services or products provided, usually, by the token issuer. U.S. regulation does not provide a safe harbor for utility tokens from the U.S. Securities and Exchange Commission's rules on securities issuance and trading. Some regulators have taken the position that a utility token is "just another form" of security token.[1][2]

The Swiss Financial Market Supervisory Authority, or FINMA, gave this definition of a utility token: "a utility token is a digital token that is purchased in order to provide digital access to an application or service."[3] One example of a utility token may be Ether, the native currency of the Ethereum platform. It, along with similar tokens, are considered "utility" tokens because they are not bought as an investment: they are bought in order to enable a user to utilize a digital service. Without them, a user cannot pay for services that are available only through the Ethereum platform.[4]

References