TurnKey presented the kind of fact set that the SEC was looking for to render a no-action letter, Curry said, adding:
“We have good facts. That’s exactly what they said on one of the calls. It’s very easy to pass the Howey Test and be a security. Our model fails the Howey Test and is not a security.”
Curry discussed the benefits of a blockchain to the business in detail on the second page of his latest letter, but he also drew attention to Pages 10 and 11 of the SEC’s new distributed ledger guidance document, which describes an online retailer offering crypto-based store credit.
“That’s what we are,” he said. “We’re really the first example of that paragraph.”