Bitcoin, Crypto currency, Blockchain

SEC ICO regulations explained

William Hinman, the Director of the Department for Corporate Finance of the Securities and Exchange Commission (SEC), has published explicit definitions for ICOs, tokens and crypto-currencies. The main headlines for the ICO regulations of the SEC, that Ethereums ETH is not a security. According to the definitions of the first sale of the ETH in the year 2014 would have been a safety.

SEC ICO regulations

In principle, all of the tokens, which were sold in a fundraising process and can be later for a profit on a Secondary market are sold, as securities classified can. This becomes even more complicated if one considers a Token, such as, for example, XRP, which was created on a private Blockchain. The SEC even went as far as it’s own Pseudo-create ICO, to educate investors, as well as the authority itself.

The rules you have to Follow the new projects from now on then?

ICOs or other Token-Fundraising methods, the want to collect money from investors in the United States, have to sell the Token, either in a Private or in a public offering. The ICO regulations of the SEC consist of four categories, the restrictions for participants, the total set financing, commercial and re-sale of the Tokens.

Regulation A+

Regulation CF

Regulation D 506(c)

Regulation S

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