U.S. SEC Rules on ICOs

by Michela Menting | 3Q 2017 | IN-4687

The U.S. Securities and Exchange Commission (SEC) has recently released an investigative report on (’s) The DAO, notably on the question of the applicability of U.S. federal securities laws on the offer and sale of DAO Tokens. The Commission has determined that DAO Tokens are in fact securities under the Securities Act of 1933 and the Securities Exchange Act of 1934. The ruling effectively clears up the current uncertain context of initial coin offerings (ICOs), the new crowd-sourced funding mechanism for blockchain-based projects such as decentralized autonomous organizations (DAO). ICO investment as of 2017 has already hit USD$1.3 billion, so the ruling will provide a much clearer regulatory structure for investors going forward.

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