Enigma (ENG) tries it luck with the stiff U.S. regulator.
Overcoming the Regulatory Hurdle
In a rather ambitious move, privacy-centric cryptocurrency project Enigma (ENG) has filed with the U.S. Securities and Exchange Commission (SEC) for the regulatory approval of its native ENG token.
Per the document published by the SEC on Friday, Enigma’s registration statement is tied to its infamous February settlement with the regulatory body pertaining to the project’s initial coin offering (ICO) that took place in 2017.
Notably, Enigma’s statement highlights that its ENG tokens are currently being used as a medium of payment on its data network are not to be considered traditional securities in the legal sense of the term.
The project’s official registration statement reads in part:
“ENG tokens lack features of such securities, including the right to receive a dividend or distribution; ENG tokens also do not provide holders with any voting, liquidation or preemption rights.”
It’s worth noting that once Enigma’s registration statement officially goes into effect, it would be subject to the Exchange Act that would require the project to file an annual 10-K, quarterly 10-Q, and current 8-K reports.
What is Enigma?
For the uninitiated, Enigma is a privacy-focused distributed ledger technology (DLT) project that seeks to develop a scalable blockchain platform for end-to-end decentralized applications (dApps).
“Enigma solves blockchain’s scalability and privacy issues from the protocol level with a second-layer, off-chain network. Key to this is Enigma’s “secret contracts”, which allow data to be processed by nodes in the Enigma network while still being kept private. Through this innovative architecture, we are creating a truly decentralized and secure solution on which innovative applications can be built.”
For those not in the know, secret contracts are similar to smart contracts with the only difference being that data within the protocol is entirely private.
That being said, it would be interesting to see the SEC’s stance toward Enigma for it being a privacy-focused project – a breed of blockchain projects most regulators are not particularly too fond of.