Crown Statement on US Securities & Exchange Commission Press Release Dated 25th

[Twister]

Crown Statement on US Securities & Exchange Commission Press Release Dated 25th July 2017

(https://www.sec.gov/news/press-release/2017-131)

In the above press release, the US SEC has ruled that US securities laws may apply to offers, sales and trading of interests in virtual organisations.

It is now clear that federal securities laws apply to those who offer and sell securities in the United States, regardless whether the issuing entity is a traditional company or a decentralized autonomous organization, regardless whether those securities are purchased using U.S. dollars or virtual currencies, and regardless whether they are distributed in certificated form or through distributed ledger technology. Such projects are encouraged to work with the US SEC to seek registration.

In recent months several projects that are likely to fall foul of the new guidance have publically expressed an interest in the Crown community project.  The Crown team would like to make it clear that Crown in no way endorses any of these projects.

Crown has expected a regulatory announcement would be coming, and has sought to conduct the project in a manner consistent with the intent of the law and regulators - both of which, we believe, seek to constructively engage with and guide innovation.  Crown is now reviewing its own structure and compliance in the context of yesterday's guidance from the SEC.  Governance and legal structure were already issues on the agenda for the upcoming meeting in Toronto, and this just re-enforces the importance of that discussion.