Thompson Bukher founding partner Tim Bukher, head of the firm’s Internet & Data Practice, addresses the regulatory fundamentals of blockchain token offerings (or ICOs) in his latest Medium post. Excerpt below:
In late July 2017, the SEC fired its first shot at the proliferation of potentially illegal securities offerings. Focusing on The DAO ICO, the SEC issued an investigation report concluding that The DAO tokens constituted securities, and warning that similar offerings of unregistered blockchain tokens could, depending on the circumstances, constitute illegal sale of unregistered securities.
Conceptually, the difference between a utility token and a security is simple: A utility token allows its holder to trade the token, or otherwise use the token, in return for some sort of service offered by the issuing company (a utility); a security grants its holder rights in the future success of the company.
Read the full article here.
For more details, or if you have any questions regarding your blockchain offering, please contact Tim Bukher, or any other member of the Thompson Internet & Data Practice team.
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