"This. Marketplace podcast is brought to you by our L A podcast, exploring ethics and technology in the latest episodes, host Malaysia Zomorodian investigates, all the personal data collected while shopping online, and why passwords are horrible and how to fix them IRL wherever podcasts are found or at. I IRL podcasts dot org and by Lenovo for business. You're an IT. But why do you do what you do to make a difference and Lenovo is here to be a difference maker for you by providing innovative technology solutions to learn more? Visit WWW dot Lincoln dot com slash S. Be powered by Intel. The blockchain is coming for Wall Street from American public media. This is marketplace tech demystifying the digital economy. I'm Ali would. In twenty eighteen ICO's or initial coin offerings were the hot new thing in startup fundraising. Accompany could raise money by selling you, a little bit of value or equity in the form of digital coin. That is kind of like a bitcoin but specific to that company ICO's raised something like twenty two billion dollars in two thousand eighteen we think it's hard to know because the whole practice was totally unregulated. A lot of ICO's turned out to be scams. The SEC started finding celebrities like Floyd, Mayweather and DJ Calot over sketchy paid promotions for ICO's. It got a little weird. And now, it's regulation time. And that means that future ICO's and their digital coins might start to look a lot more like good old fashioned stock except traded on the blockchain, and that has big ramifications for Wall Street, Kristen howls, a partner with the law firm, FOX Rothschild. She helps companies create an ICO the SEC started to really crack down on this last year large. Really, I think because of massive fraud and theft and with this action people that have had to shift their pro choice to this ICO two point. Oh, also called a security token offering where they split this token idea into two things they issue stock as part one of this. And then part two is they may be they don't have to go. Have this token that does everything but stock and so on the first part of that it's issuing stock in blockchain form, and then it will trade on the blockchain. So that you would buy and sell it as though you were buying bitcoin. But in this case, it would be, you know, Kristen coin. Yes. And no, so yes, in the sense that you will buy and sell on an exchange, but you won't buy and sell these on the current exchanges that trade, for instance, bitcoin and all these other tokens that are still out there because those exchanges are not licensed trade securities. So a lot of really big players, including Goldman Sachs, and NASDAQ and a whole bunch of other people are in the process of building token security exchanges. Interesting. So I'm hearing you say this, and it sounds like there's functionally no difference between trading secure token and trading. A stock accept the possibility that the company itself is not technically public. There's a couple of things there. So on the trading side. I would go out on a limb to predict that all-stock will be traded in some way related to blockchain or or whatever the next best technology is because it's superior to what we're. Doing. Now, you can have a lot better transparency in the market in two stock pricing volume. You could also potentially eliminate some of the metal people where you don't actually need all these these folks in the middle, which of course, brings the resistance to change because broker dealers and others have a vested interest in a system, but we can have a much more seamless actually transparent stock trading mechanism using blockchain Kristen howls partner with the law firm, FOX Rothschild. Now, the SEC has clearly said it thinks digital tokens from companies are securities, but it hasn't issued any formal rules. Just yet. And now for some related links. What's kind of doubly interesting about this idea of ICO's going legit as these so-called security tokens and potentially changing the way Wall Street works, and maybe even becoming the future of stock trading. Is that kind of everything about bitcoin and the blockchain was conceived to be just the opposite of all of that. And the bitcoin community feels that part of what really killed the ICO. Yes. In addition to the scams and the fraud, which everyone admits where a problem was the threat of regulation, which is what we're now seeing and that in fact, that's kind of a bad thing because I see os were a much more democratic way for potential startups to raise money, they didn't have to go through venture capital, which has all these problems with access and diversity geography, and of course, centralization and now the same old gatekeepers get to keep all the power. There's a good piece on bitcoin is about this. I would encourage you to read it. Find it on our website. Marketplace tech dot org and not for nothing. The blockchain economic forum is happening this week in Davos, Switzerland alongside the World Economic Forum and security token offerings is the topic of a roundtable discussion on the very first night. Also on the agenda central Bank digital currencies, which I think the bitcoin people would also say is a bit of an oxymoron, the establishment eats us all friends. I'm Molly would and that's marketplace tech. This is a PM. This marketplace podcast is brought to you by Kronos, no-one, compliments, you in their paycheck is correct. But make one mistake, and you risk alienating your entire workforce. With Kronos, they make sure your payroll is done, right. The first time from punch to paycheck embedded checklists. Simplified workflows a single source of truth HR, payroll talent and timekeeping in one unified system all with a proven implementation approach and simplified transparent pricing. Learn more at Cronos dot com slash payroll. Kronos, workforce innovation that works."