SEC Deals Blow To ICOs: DAO Tokens Are Securities, Subject to Securities Laws
Initial Coin Offerings have had a free run until now, raising millions of dollars in a matter of minutes thanks to a cryptocurrency frenzy. All that may change now, with the SEC concluding that ICO tokens may be securities and subject to federal securities laws.It was found that the DAO (Decentralized Autonomous Organization) tokens which were issued in 2016 were securities.The investigation concluded the DAO token was indeed a security and the sale of these tokens were subject to federal securities laws.Although the DAO was described as a crowdfunding contract, it did not meet the requirements of the Regulation Crowdfunding exemption, as it was not a registered broker-dealer/funding portal.Stephanie Avakian, Co-Director of the SEC’s Enforcement Division said"The innovative technology behind these virtual transactions does not exempt securities offerings and trading platforms from the regulatory framework designed to protect investors and the integrity of the markets."While the SEC has unequivocally concluded that the DAO tokens were indeed securities, not all ICOs have been brought under securities laws. It has stated that the facts and circumstances of any investment transaction (including economic realities) will determine whether the transaction constitutes the offer of sale of a security.
The author of the article Jacob J https://cointelegraph.com/authors/jacob_j
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Amazing post i just upvoted your post
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Plagiate or not the subject remain actual! Is not a bad idea to have some legislation in place for this ICOs.