Published on November 13th, 2017 | by bitcoin0
SAFT: Is it a Blessing or Symptom of Regulatory Uncertainty in Technology?
This is how many understand the “simple agreement for future tokens” (or SAFT) concept – that the tokens start as securities and later become commodities.
It’s wonderful to see that Quintenz is open to novel legal and policy arguments, but that’s not exactly how the SAFT model of token distribution is meant to work.
The impetus behind the SAFT structure is the fact that there is no bright line rule that determines which types of tokens are securities and which are not.
Instead, what qualifies as a security can only be determined by an application of the flexible Howey test to the facts and circumstances of particular tokens.
Mission over minutiae
The SAFT approach is very clever, but cleverness is often the hallmark of poor legal reasoning.