Bitcoin, Crypto currency, Blockchain

SEC ICO regulations explained

3ca9280e4b39a428e8286076f6302126 - 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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