SEC agrees aircraft charter startup TurnKey Jet's tokens are not securities

Regulation • April 3, 2019, 12:45PM EDT

The U.S. Securities and Exchange Commission's Division of Corporation Finance is issuing a response to a no-action request from TurnKey Jet, indicating that it will not recommend enforcement action against the firm.

TurnKey Jet is an aircraft charter service based in the U.S. The firm previously developed TKJ tokens for its platform. For TurnKey Jet's tokens to stay under regulatory compliance, the following conditions have to be met:

TKJ will not be used to develop the TKJ platform, network, or app
The TKJ platform, network, or app will be developed prior to the sale of the TKJ token
TJK tokens will be immediately usable when they are sold
The transferring of TKJ tokens is restricted to the TKJ platform
TKJ will sell its tokens at a price of 1 USD, and "each token will represent a TKJ obligation to supply air charter services at a value of one USD per token"
If TKJ repurchases the tokens, they can only do so below face value
TKJ tokens are marketed to emphasize utility, not its potential to increase in market value

About Author

Steven Zheng is a researcher for The Block. He joined The Block in August 2018. Steven graduated from St. John’s University with a degree in economics. Previously, he covered blockchain and crypto at Radicle, a startup analytics firm. He also had brief stints at Cheddar, a media startup, and Bowery Capital, a venture capital firm. He owns bitcoin. Follow Steven on Twitter at: @Dogetoshi