SEC Commissioner Hester Peirce attended the CfPA Regulated Investment Crowdfunding Summit this week, sharing insight into the regulatory environment at the Commission. One of the topics the Commissioner discussed was the advent of “Mirror Tokens.”
Mirror Tokens are assets that are designed to reflect the value of a private security without actually selling the security. The goal is to provide access to promising early-stage firms to a wider audience. First introduced by Republic, initially for the US, the platform initially planned to use Reg CF to sell these investments, but eventually shifted to Reg D, making them accessible only to Accredited Investors. In the UK at Republic Europe, Mirror Notes are being sold to investors. The first assets sold were tied to SpaceX, the most successful private space firm ever, operated by Elon Musk.
Interviewed by Brian Christie, a CfPA Board Member, he mentioned that his association had issued a statement criticizing Mirror Tokens. The CfPA statement, signed by Jenny Kassan, President of the CfPA Board of Directors, called for action to stop the sale of these assets under Reg CF.
While noting that anything she states is her own opinion and does not reflect the opinion of the SEC, Commissioner Peirce addresses Mirror Tokens in the video below.
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