Getting licenses from the US Securities and Exchange Commission is always an uphill task, but for Harbor, a digital platform for alternative assets, it seems to be easy. Harbor is among firms boasting around of having a broker-dealer license and transfer agent license.
With the licenses being different, for Harbor, it gives it the upper hand, since the licenses are completing each other and completing its business model. Through the broker-dealer license, Harbor continues to act as an agent, but now it can manage records of stock ownership and even initiate dividend payment.
SEC’s Requirement has given Harbor Business
Per SEC’s rules, firms opting for Regulation A+ offerings must seek the services of a certified and licensed transfer agent firm when conducting their Regulation A+ offerings. With Harbor now in possession of the license, startups going for Regulation A+ offerings are in luck since it can now provide its services.
“Now we can provide all services under one roof. The broker-dealer license gives us the power to lure investors into investing with our firm as the broker. But now, through the transfer agent license, we can maintain the records of our investors and even initiate payment of dividends. The two licenses complement each other and complete our business model.” Joshua Stein Harbor CEO.
While the above points to Harbor moving in to cash in on the gap created by the SEC‘s requirements, two firms with approval from SEC to hold their Regulation A+ have a different view. Through their circulars, YouNow and Blockstack, the two firms with approval from SEC think it’s not a must to work with a transfer agent. This is because, at the moment, they believe their tokens aren’t securities, so there is no need for a transfer agent.
Besides that, per their circulars, part of the services offered by a transfer agent can be done automatically by their blockchain-based systems. Although the two firms above believe they don’t need to work with a transfer agent, it’s up to SEC to come out and provide clarity on its laws.