The U.S. Securities and Exchange Commission issued a report on DAO investigation this July that attracted attention of the whole blockchain community. You may remember it: according to that report digital tokens are securities and therefore fall under the US law regulations for this financial instrument, i.e. the Securities Act.

Since Aeron is offering its own digital token (ARN) through a Token Sale, it is very important to us to communicate our understanding of its status in relation to the DAO report. Together with our lawyers we have formed the following opinion.

ARN token, as we see it, is a utility token that will be used in the Aeron ecosystem to access various functions in the Aeron application or to purchase Aeron services on the future stages of its development.

Since this token will be primarily used inside the Aeron ecosystem, we believe that ARN is not a security and therefore DAO report’s findings do not apply to upcoming Token Sale.

For further clarification we put ARN token through the Howey test — a check first introduced by the Supreme Court of the United States. Please follow this link to read the complete report on our website.

Under the Howey test, a transaction is an investment contract if:

It is an investment of money There is an expectation of profits from the investment The investment of money is in a common enterprise Any profit comes from the efforts of a promoter or third party.

Based on the test outcome, ARN token is unlikely to be treated as a security and does not have to be registered under the Securities Act. We will continue to pay close attention to the US and global financial regulators’ position on cryptocurrencies and digital tokens, and will act in compliance to their recommendations.

Visit our website for more details about Aeron project and do not miss the Limited Token Presale.