xGov 183: Choice Coin Compliance


The purpose for this grant is building a platform for establishing a culture of compliance for projects on Algorand. The initial focus for this work will center around U.S. securities compliance, providing new resources for structuring Algorand Standard Assets (ASAs) to ensure regulatory compliance. We will build a platform for compliance, to allow Algorand projects to onboard and proceed through tasks to ensure regulatory compliance. Projects will pay a monthly subscription and have access to the platform, which will include updated data on regulatory changes in various jurisdictions over time.

Projects who onboard and complete required tasks will receive a compliance certification from a licensed attorney. This will create a one stop shop for projects to have their regulatory compliance needs met. Ultimately, this will improve the legitimacy of ASAs and help to improve relationships between centralized exchanges (CEX) and Algorand projects because compliance is the most important factor of review for most CEXs.

xGov Proposal 183: Choice Coin Compliance

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your solution is not a solution at all, you will build an AI (based on which data? which model will you use?) that may suggest if something is a security or not but that won’t really help anyone in the end since not even the persons who make the laws have answers to this. also based on your prior “research” i am not confident that you can build anything good at all


The data will be from SEC case law, secondary sources, and regulations. The model will be built after the database is developed. Generally the data runs the operation with AI.

The idea is that it will help in the end. I don’t think it will be easy, or that work will stop at the end of the grant. But, one thing that will help any project is having a formal legal memorandum of compliance, as well as policies and procedures to guide compliance. In the event any agency brings an enforcement action against any company or project, they look to whether the company or project has an existing compliance program. If the answer is yes, then it is a mitigating factor.

So, building AI software in partnership with a human lawyer’s review and analysis will help projects to reduce risk. That is not to say that it can guarantee they won’t have legal problems or that they won’t have a compliance failure, but it does help to prevent both.

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