RE: Are All ICOs Now Officially "Securities" According to the SEC?

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Are All ICOs Now Officially "Securities" According to the SEC?

in cryptocurrency •  7 years ago 

Based on these (I haven't read the whole report yet)

The innovative technology behind these virtual transactions does not exempt securities offerings and trading platforms

the federal securities laws apply to those who offer and sell securities in the United States

ICOs with the right structure and a clear disclaimer like "this token does not confer any rights" are safe. I totally agree with you about regulations, in any case.

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But don't they all have that language? Just by saying, "Oh, no, this isn't a security, it's a donation with no rights" doesn't make it so in the eyes of the law.

Yeah, that's true. They have to also be able to make a reasonable argument that they don't fit the legal definition of "security" or that they're exempt. Even then, regulators may see things differently or even contradict themselves. Sometimes I really want to leave this country...

Have you seen this one?
https://www.rootproject.co

I'm confused by these projects that have a "pre ICO" before the real ICO. I just don't get it. It does seem like any interesting project though. I like the idea of cryptocurrency helping impoverished people.

It's just a pre-sale with a bonus. They also said they "needed to do the pre-ICO before legally forming because the nonprofit element brings in a whole other sector of law, and requires 50k-ish of lawyer bills."

I am not a lawyer and don't understand how RootProject can claim to be so well protected. Just asked in their slack. Hopefully they've got more than that statement on the website!