The developer of the stablecoin Basis – Intangible Labs – confirmed the project shutdown citing the pressure from the US Securities and Exchange Commission.
The company spokesperson stated their team has held a meeting with the regulator, which hardly clarified certain issues. As a result, the company believed that they would fail to avoid classification as securities.
It was reported that the Basis was ready for the launch, so regulator's approval was the remaining item for the project start.
Intangible Labs noted that all funds that were received earlier ($133 million) will be paid back to investors, including such big fishes as Google Ventures, Andreessen Horowitz, Bain Capital, Digital Currency Group, MetaStable Capital, Pantera Capital and PolyChain Capital.
The whitepaper was unveiled in June 2017, saying that the stablecoin represents an algorithmic central bank to provide customers with a stable coin for the global transactions. Unlike traditional cryptos, Basis would not face such rate volatility as other coins.
The Basis project might entail automatical token buying at a reduced price and issuing new tokes at higher prices. At the same time, the stable price could be reached via the pegging to the fiats or other assets, while Basis emission would be based on the benchmark shares and bonds.
As the company experts said, the regulator would eventually consider token as securities, which could force Intangible Labs to restrain the holding with the list of accreditated investors in the USA for the first year after the issue.