THELOGICALINDIAN - Overstock has filed a announcement with the SEC the Securities and Exchange Commission and asked permission to affair up to 500 actor in banal that is controlled by a Bitcoinlike arrangement The new abstraction may transform the way the acceptable banal bazaar is perceived However permission is still accessible from the SEC
Also read: Interview With Overstock CEO, Patrick Byrne
The filing to the SEC reads:
The abstraction to affair a “cryptosecurity” application Bitcoin-like technology came from Overstock’s advanced CEO, Patrick Byrne. He alike assassin developers and the attorneys to assignment on this project. However, to assassinate the idea, Byrne needs permission from the SEC. Byrne accepted that his abstraction is at the benevolence of the establishment, and has appealed to SEC to “sprinkle angelic water” on his advance appear agenda securities.
The Nature of Cryptosecurity
Once Byrne’s activity receives “shelf registration” from the SEC, it will be able to advertise any affectionate of security, such as accepted stock, preferred, debt, and warrants. Byrne hopes to action banal that is not controlled not by a centralized exchange, but by a arrangement of machines advance beyond the Internet. Byrne calls this arrangement an “Alternative Trading System,” or ATS; alike this arrangement needs to be registered and accustomed by the SEC and ask for permission.
Patrick Byrne and Overstock see a lot of loopholes in absolute banal markets that they accept can be rectified — provided a new, blockchain-based technology is used. For instance, application cryptographic algorithms, the ATS will mathematically verify all trades and almanac them in an online ledger. These records will be accessible for anybody to appraise at any time, aloof like affairs on the Bitcoin blockchain.
This is an aggressive activity from Patrick Byrne, who believes that the agenda bill can chargeless the abridgement from the anchor of big banks and big government. ‘Cryptosecurity’ is one of abounding means that seek accommodate the banal bazaar application Bitcoin technology. However, Overstock’s SEC admits that, initially, actual few shareholders will accept to authority their shares in agenda anatomy because of the abstruse uncertainty.
Overstock’s SEC filing says,
Industry experts believe that the SEC may accept the filing. However, they additionally advise that the approval process may booty a while because the SEC’s accumulated accounts agents is awfully accident afraid back it comes to new technology. Although the blockchain technology impressive, it is ambiguous how SEC admiral will feel about the technology.
Like the SEC, investors tend to be actual risk-averse about things like custody; they appetite able authoritative blank by the SEC and allowance organizations such as the SIPC. Though the SEC has not yet commented on the filing, Byrne and Overstock spokesperson Judd Bagley apprehend the SEC to accessible a analysis of the filing in the abreast future.
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Featured image: SMN Weekly
