# kaal:claim:3411110-008

**Claim.** The compliance burden attached to operating an alternative trading system, including fees, consumer protection, examination, and books and records requirements, is typically cost prohibitive for startups.

**Type.** failure  **Support.** asserted

**Holds when.**

- startup firms seeking to operate an ATS
- SEC and FINRA compliance regime

**Source quote.**

> ATS compliance costs are typically cost prohibitive for startups.

**From.** Wulf A. Kaal, Samuel Evans, *Blockchain-Based Securities Offerings* (2019), II. Overstock Blockchain Securities Offering, page 9

**Cite as.** Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110

**Verify.** sha256 of source PDF `c7626eeb7642045b79f8745df1f7232a8fe8bc44a1f7e87b592850e35b392b50` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Evans%20-%202019%20-%20Blockchain-Based%20Securities%20Offerings.pdf

**Failure mode.** ATS compliance cost barrier  (family: compliance-cost-and-barrier-to-entry)

**Topics.** compliance, economics, innovation

**Keywords.** ats, compliance-costs, finra, market-entry, startups

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.