Using a blockchain doesn’t exempt you from securities regulations; Timothy B. Lee; In Ars Technica; 2017-07-26.
Teaser: A $150 million Ethereum crowdfunding project broke the law, SEC says.
tl;dr → DAO et al. broke the law by offering shares to the public without complying with applicable securities laws, but the SEC won’t prosecute them under their authority to defend the law that they are declared to have broken.
34-81207; a ruling; Securities and Exchange Commission (SEC); 2017-07-25.
- $50M stolen
- re-capitalized with $150 million funny munny.
- <quote>In short, the DAO fit the conventional definition of an investment security.<quote>
- Ethereum Classic
the bright line
<quote>If coin owners are promised voting rights in an organization or the right to a share of profits, that’s likely to be a security.
By contrast, if users mostly buy tokens for a utilitarian purpose—for example, to buy network storage—it’s less likely to be a security. </quote>
<quote>The SEC reasoned that if something looks like a duck and quacks like a duck, the law should treat it like a duck.</quote>
- ICO → Initial Coin Offering
- Patrick Murck
- expert, Berkman Klein Center, Harvard University.
- ex-general counsel and (ex-)executive director, Bitcoin Foundation, 2012→2015.
- Ethereum Classic Explained Blockchain; Some Cub Reporter (SCR); In Some Blog entitled Coindesk; WHEN?
- $35 Million 30 Seconds Token Sale Internet Browser Brave Sells; SCR; In Some Blog entitled Coindesk; WHEN?
- Basic Attention Token
- Filecoin To Run First Coinlist Based Ico Html”>planning An Initial Coin Offering; staff; In CNBC; 2017-07-19.
- Kik makes a move into The Blockchain; SCR; In TechCrunch; 2017-05-25.
- Tezos ICO Cryptocurrency Startup; SCR; In Mashable; 2017-07-05.
- Bitcoin Rival Ethereum Fights For Its Survival After 50 Million Heist; SCR; In Ars Technica; 2016-06.