Release Date: May 6, 2025 | Publisher: Knowpia Inc.
[Silicon Valley, May 6, 2025] — As a critical step is taken in the compliance development and innovation of Web3, the development team of Knowpia Inc., a startup from Silicon Valley and the emerging SocialFi platform Funs AI, held a closed-door meeting with the U.S. Securities and Exchange Commission (SEC) Cryptocurrency Assets Special Working Group on May 5, 2025, to officially submit its groundbreaking STO+ compliance framework and engage in in-depth discussions on the future regulation of security tokens.
The core topic of this conference is to introduce the STO+ framework - a hybrid token model that integrates the revenue rights and equity attributes of security tokens, along with the payment, reward, and governance functions of utility tokens, aimed at providing a compliant and operational issuance solution for the new generation of Web3 platforms.
Policy support consolidates the legal foundation of STO+
On the day of the meeting, the U.S. House of Representatives simultaneously released the "Digital Asset Market Structure Discussion Draft," marking a milestone moment in U.S. digital asset legislation. This draft clearly defines the following core concepts from a federal level for the first time:
End User Distribution: The act of fairly distributing tokens to users through an open and transparent mechanism without monetary consideration, not regarded as a securities sale;
Mixed Digital Asset Transactions: Digital assets that possess both utility and security attributes, allowing for the switching of uses between platforms and exchanges.
"One Coin, Dual State": A Bridge Between Functionality and Compliance
During the meeting, Knowpia's management team—including CEO Keven Lai, legal advisor, financial advisor, and engineering leader—detailed the architectural design and operational logic of STO+.
Unlike the traditional centralized issuance method in STOs, STO+ introduces an innovative "dual-state coin" mechanism, namely:
Once the "Draft for the Structure of Digital Asset Markets" is formally legislated, this token will operate as a utility token within the new Funs AI platform, distributed through user behavior, and can be used for incentives, payments, content rewards, and community governance;
Outside of the platform, the token will be tradable as a security token on regulated ATS (Alternative Trading System) with dividend and equity attributes.
The "social mining" issuance model of STO+ directly aligns with the definition of end-user distribution in the draft, and its design structure of "one coin with dual states" is a perfect example of hybrid digital assets.
This makes STO+ one of the first Web3 token models that naturally comply with the new framework for digital asset regulation in the United States, having a legal foundation while retaining the principles of decentralization and fair participation.
Over 70% of tokens are generated through "social mining": a user-driven new issuance model.
Unlike traditional token sale methods, over 70% of the tokens in STO+ are obtained through the platform's "social mining" mechanism—users can earn tokens through posting, liking, commenting, and interacting with the community. This model ensures a fair, decentralized, and community-driven token distribution method, eliminating excessive speculation and control by a single entity.
Parallel Technology Architecture: Building an Auditable and Regulated Web3 Platform
On a technical level, the STO+ architecture is based on a parallel system design between the platform side and the broker side:
Platform side: Once the draft is approved, the new Funs AI will be responsible for managing user incentives, platform payments, and community governance;
Brokerage side: Compliant licensed institutions will be responsible for the management of the securities attributes of the tokens, including trading and dividend distribution.
To ensure comprehensive compliance, the system incorporates KYC/AML identity verification mechanisms, auditable smart contracts, and is equipped with custodial wallets, achieving full-chain transparency and compliance traceability from the platform to the exchange.
At the end of the meeting, both parties agreed to continue holding follow-up meetings to jointly explore key issues related to the regulation of tokenized securities.
Looking ahead to 2025: Funs AI is becoming a global model for compliance innovation in Web3.
As the STO+ framework officially enters the SEC's regulatory view and is highly consistent with the "end-user distribution" and "hybrid digital asset" definitions proposed by the U.S. House of Representatives, Funs AI is not only exploring compliance pathways but is also reshaping the future of decentralized social economy.
Against the backdrop of global digital asset regulation, fair issuance, and platform transparency becoming focal points, Knowpia's proposed "dual-state currency" framework and community-driven issuance mechanism are establishing a new standard for a sustainable and inclusive Web3 ecosystem.
Looking ahead to 2025, Funs AI is expected to become one of the first hybrid platforms validated by the U.S. regulatory framework, demonstrating through tangible results that compliance is empowerment and decentralization is value.
Funs AI is rapidly becoming one of the most noteworthy and influential Web3 projects in the world.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Knowpia Inc. engages in regulatory dialogue with the SEC, embracing U.S. digital asset reform and leading a new era of Web3 Compliance innovation.
Release Date: May 6, 2025 | Publisher: Knowpia Inc.
[Silicon Valley, May 6, 2025] — As a critical step is taken in the compliance development and innovation of Web3, the development team of Knowpia Inc., a startup from Silicon Valley and the emerging SocialFi platform Funs AI, held a closed-door meeting with the U.S. Securities and Exchange Commission (SEC) Cryptocurrency Assets Special Working Group on May 5, 2025, to officially submit its groundbreaking STO+ compliance framework and engage in in-depth discussions on the future regulation of security tokens.
The core topic of this conference is to introduce the STO+ framework - a hybrid token model that integrates the revenue rights and equity attributes of security tokens, along with the payment, reward, and governance functions of utility tokens, aimed at providing a compliant and operational issuance solution for the new generation of Web3 platforms.
Policy support consolidates the legal foundation of STO+
On the day of the meeting, the U.S. House of Representatives simultaneously released the "Digital Asset Market Structure Discussion Draft," marking a milestone moment in U.S. digital asset legislation. This draft clearly defines the following core concepts from a federal level for the first time:
"One Coin, Dual State": A Bridge Between Functionality and Compliance
During the meeting, Knowpia's management team—including CEO Keven Lai, legal advisor, financial advisor, and engineering leader—detailed the architectural design and operational logic of STO+.
Unlike the traditional centralized issuance method in STOs, STO+ introduces an innovative "dual-state coin" mechanism, namely:
The "social mining" issuance model of STO+ directly aligns with the definition of end-user distribution in the draft, and its design structure of "one coin with dual states" is a perfect example of hybrid digital assets.
This makes STO+ one of the first Web3 token models that naturally comply with the new framework for digital asset regulation in the United States, having a legal foundation while retaining the principles of decentralization and fair participation.
Over 70% of tokens are generated through "social mining": a user-driven new issuance model.
Unlike traditional token sale methods, over 70% of the tokens in STO+ are obtained through the platform's "social mining" mechanism—users can earn tokens through posting, liking, commenting, and interacting with the community. This model ensures a fair, decentralized, and community-driven token distribution method, eliminating excessive speculation and control by a single entity.
Parallel Technology Architecture: Building an Auditable and Regulated Web3 Platform
On a technical level, the STO+ architecture is based on a parallel system design between the platform side and the broker side:
To ensure comprehensive compliance, the system incorporates KYC/AML identity verification mechanisms, auditable smart contracts, and is equipped with custodial wallets, achieving full-chain transparency and compliance traceability from the platform to the exchange.
At the end of the meeting, both parties agreed to continue holding follow-up meetings to jointly explore key issues related to the regulation of tokenized securities.
Looking ahead to 2025: Funs AI is becoming a global model for compliance innovation in Web3.
As the STO+ framework officially enters the SEC's regulatory view and is highly consistent with the "end-user distribution" and "hybrid digital asset" definitions proposed by the U.S. House of Representatives, Funs AI is not only exploring compliance pathways but is also reshaping the future of decentralized social economy.
Against the backdrop of global digital asset regulation, fair issuance, and platform transparency becoming focal points, Knowpia's proposed "dual-state currency" framework and community-driven issuance mechanism are establishing a new standard for a sustainable and inclusive Web3 ecosystem.
Looking ahead to 2025, Funs AI is expected to become one of the first hybrid platforms validated by the U.S. regulatory framework, demonstrating through tangible results that compliance is empowerment and decentralization is value.
Funs AI is rapidly becoming one of the most noteworthy and influential Web3 projects in the world.