This Small Altcoin's Private Meeting with the SEC Has Been Revealed! Became Green on a Red Day, Rare Altcoins

A document recently released by the U.S. Securities and Exchange Commission (SEC) reveals that representatives of Chia Network XCH recently met with the SEC's Crypto Task Force to discuss critical regulatory issues facing the cryptocurrency sector.

The meeting attended by Chia Network CEO Gene Hoffman, Chief Legal Officer Thomas Chow, and Career Capital CEO Trent Martensen took place on February 25, 2025. Discussions focused on regulatory frameworks for crypto assets, fraud prevention, decentralization, and compatibility paths for blockchain projects.

According to the SEC memorandum, the agenda included the following:

• Regulation of innovative financial products: Chia Network raised concerns about the need to address applications related to blockchain and crypto on their merits, rather than being rejected due to their relationship with crypto. They referred to Permuto Capital's MSFT Trust I registration as an example.
• Decentralization standards: Chia argued that technical decentralization should be a key determinant in regulatory decisions, emphasizing the need for clear guidelines on decentralization. They proposed a public notice and comment period for blockchain projects claiming decentralization.
• Ways for token registration and ICOs: Chia suggested updates to Regulation A to accommodate crypto assets, including provisions related to decentralization criteria. They proposed a structured transition period for projects to remain compliant with securities regulations while decentralizing. Opposition to regulatory sandboxes: Chia argued that allowing projects to bypass established regulations could lead to systemic risks and encourage hasty token launches.
• Retrospective compliance relaxation: Chia proposes a framework for non-compliant projects to obtain regulatory approval, while also suggesting fair treatment for those who have adhered to regulations from the beginning.
• Increased interaction with technical experts: The firm suggested that the SEC consult with blockchain academics and industry experts rather than relying solely on project founders.

The meeting highlights Chia Network's commitment to working within regulatory frameworks, especially for a potential public offering through the S-1 registration process. Unlike many crypto projects facing SEC scrutiny for unregistered securities offerings, the company has positioned itself as a compliance-focused blockchain firm.

The XCH price has increased by approximately 11% in the last 24 hours.