The United States SEC has reportedly granted authorization for a crypto-based gaming firm, to generate unregistered blockchain tokens, classifying the token as non-securities.

The news was disclosed by the SEC through the commission’s web page on July 25, as a response to a request from the firm Pocketful of Quarters (PoQ) regarding its proposal of the “Quarters” tokens. 

“Based on the facts presented, the Division will not recommend enforcement action to the Commission if, in reliance on your opinion as counsel that the Quarters are not securities, PoQ offers and sells the Quarters without registration under Section 5 of the Securities Act and does not register Quarters as a class of equity securities under Section 12(g) of the Exchange Act.” Jonathan Ingram – SEC’s FinHub division chief legal advisor – claimed.

According to Ingram, a number of conditions regarding Quarters in its inquiry has been considered upon making the SEC decision. This includes that “PoQ will market and sell Quarters to gamers solely for consumptive use as a means of accessing and interacting with Participating Games.”

Moreover, the term further notified that Quarters holders’ transacting ability is limited to PoQ or “Approved Accounts,”, which follows Know Your Customer and AML regulations.

PoQ provides rewards for contests in widely played games like PUBG, Fortnite or CSGO. According to its webpage, PoQ investors will be transferred a sum of Quarter sales royalties in Ether (ETH) through smart contracts.