Protecting Consumers Is The Only Way To Truly Change The World
We’re engaging in consistent dialogue and education efforts with policymakers, regulators, and governments around the world. We believe the current regulatory frameworks can and should apply to digital assets and blockchains, protecting consumers and other end users without stifling innovation. Our compliance efforts focus on driving adoption of cryptocurrency and blockchain technology, while simultaneously pushing the industry to provide greater protection for consumers and end users from illegal activities and fraud.
Chia’s Compliance Efforts
Chia is compliant, working to ensure our approach offers the transparency and auditability necessary to build trust with consumers, enterprises, and governments.
- Chia recognizes that compliance with financial regulations is the only way to build a blockchain that the world can trust and rely on. In a US context, we let our securities be securities and our commodities be commodities, with the view that both the SEC and the CFTC have a place in regulating our activities.
- We’ve announced our intention of becoming a public reporting company subject to the Securities Act of 1934, which means we are planning to be fully transparent and compliant with regulatory requirements prior to any securities offering.
- Chia is funded by reputable investors including Andreessen Horowitz, Richmond Global Ventures, Slow Ventures, True Ventures, Greylock, and DCM. We raised this funding by selling preferred stock, the tried-and-true method of Silicon Valley, VC-backed startups on their way to becoming public.
- Unlike much of the industry, we don’t believe the Howey test is difficult to apply and are confident that XCH doesn’t constitute a security under Howey.
We have proactively engaged with the SEC:
- We confidentially submitted a draft Registration Statement on Form S-1 with the SEC relating to a proposed initial public offering of our common stock. (This notice is being made pursuant to, and in accordance with, Rule 135 under the Securities Act of 1933, as amended (the “Securities Act”) and shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act.)
- We previously engaged with the staff of the SEC regarding potential offering structures on a confidential basis through emails and meetings in 2018.
- We confidentially submitted a Regulation A+ offering circular to the SEC in November 2018 and received a comment letter in early 2019. Based on comments received, we decided to focus on the business and a potential later initial public offering.