Chiliz discusses potential return to American cryptocurrency market with SEC Crypto Task Force
Sports Token Platform Chiliz Seeks SEC Approval for US Return
Sports-focused cryptocurrency platform Chiliz is in talks with the U.S. Securities and Exchange Commission (SEC) to re-enter the U.S. market ahead of the 2026 FIFA World Cup. The discussion, detailed in an SEC log published on their website, involved Chiliz, Zuber Lawler LLP, and The Digital Chamber.
Chiliz proposed a draft no-action letter, aiming to address concerns regarding the legal status of fan tokens. The company argued that its tokens, used for fan engagement through voting rights, exclusive rewards, and more, should not be considered securities. They also sought regulatory guidance on how to proceed.
The company's global reach includes partnerships with major clubs like FC Barcelona, Paris Saint-Germain, AC Milan, and Arsenal. However, agreements with 13 NFL and 27 NBA teams were put on hold due to regulatory uncertainty.
Now, the company's plans align with a leadership transition at the SEC. Newly appointed SEC Chair, Paul Atkins, is a crypto supporter, lending hope for clearer digital assets regulations. His predecessor, acting chair Mark Uyeda, had already begun rolling back enforcement actions against Gemini, Kraken, Immutable, and Uniswap.
Chiliz's market performance has faced significant challenges. Its native token CHZ is down 67% over the past year. A potential re-entry into the U.S. market could act as a catalyst, boosting token performance in the short to long term.
[1] Chiliz's fan tokens should not be considered securities, as their utility-driven design prioritizes fan engagement, rather than profit expectations.
[2] The company plans to invest between $50 million and $100 million to re-enter the U.S. market, focusing on partnerships with major sports clubs and leagues.
[3] The changing leadership at the SEC presents an opportunity for clearer regulations on digital assets, potentially benefiting Chiliz's position.
[4] A favorable decision from the SEC could set a precedent for other Web3 platforms seeking regulatory clarity.
[5] Announcements of regulatory progress may lead to a surge in demand for Chiliz, causing a rally in its token price.
[6] The SEC's dialogue with Chiliz could pave the way for a return of sports-centric blockchain technology to the US market, particularly ahead of the 2026 FIFA World Cup.
[7] If Chiliz's proposed draft no-action letter receives approval from the SEC, it may enable the platform to enable finance opportunities and innovations in the sports industry through decentralized exchange (DEX) and DeFi platforms.
[8] By 2025, the successful re-entry of Chiliz into the US market could potentially steer the direction of sports finance, redefining the landscape of sports, technology, and investing.
