BlackStar Enterprise Group, Inc. received a ?Notice of Allowance' from the United States Patent and Trademark Office (USPTO), for a patent application titled ?System and Method for Preparing for a SEC Financial Statement Audit by Recording Corporate Governance Information on an Immutable Blockchain.? The technology claimed in the patent, which generally relates to recording corporate governance information on a blockchain, helps with the organization of public and private companies preparing for a financial audit, assists with compliance with rules and regulations of various regulatory authorities (e.g. Securities and Exchange Commission) and is compatible with use through any U.S. brokerage firm. The audit platform, which is nearing completion of the development phase, may become a catalyst in the transparency of internal corporate governance and controls, contributing to the corporate accountability movement.

When the audit platform was first conceptualized in 2018 by the Company's CEO, he felt it could be a white-label process for all organizations with government contracts, individuals, new corporations, and elected government employers, all of whom solicit money from the public. BlackStar's Corporate Governance Blockchain could enable a risk-based regulation approach in the U.S. securities market in transition from the rule-based regime embedded in the Securities Act 1934. The elements of a risk-based approach entail the evaluation of how companies identify, measure, control, and monitor diverse types of risk.

Regulators with immutable blockchain technology could focus resources on entities that pose a higher risk.