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Uh, isn't it also illegal to buy unlicensed securities? Couldn't the SEC also prosecute individuals who bought into obvious scams as unaccredited investors? IAN

Uh, isn't it also illegal to buy unlicensed securities? Couldn't the SEC also prosecute individuals who bought into obvious scams as unaccredited investors? IANAL, but securities fraud is securities fraud. Why even take the risk? Why, especially now, announce to the world that you're taking the risk like in the article?

JumpCrisscross 9y ago
Disclaimer: I am not a lawyer and this is not legal advice. Don't take investment advice from my Internet comments. > isn't it also illegal to buy unlicensed securities There are "safe harbors" like Regulation D [1]. This is how private companies issue securities. There are still rules about to whom you can sell your securities and the minimum information you have to make available to them. Needless to say, I have not seen an ICO promoter make use of these safe harbours. [1] https://www.sec.gov/fast-answers/answers-regdhtm.html https://www.sec.gov/fast-answers/answers-regdhtm.html
- throwaway86328 9y ago
  I highly doubt most ICOs qualify for exemptions, let alone notified the SEC of their intentions to make a public offering.
Snackchez 9y ago
https://www.sec.gov/news/press-release/2017-131 https://www.sec.gov/news/press-release/2017-131 They've been warned, but what does that even mean?
- throwaway86328 9y ago
  IANAL, but I interpret it to mean that both buyers and sellers are responsible for understanding what they're transacting, which are likely securities. Unlicensed securities that are not exempt from the law are illegal to buy or sell. The implications seem clear to me. Again, IANAL, but a lot of people seem to be commiting felonies, even if they don't know it yet. These ICOs can ruin the lives of more than just the owners.
googletazer 9y ago
>unaccredited investors unaccredited investors, oh my! When you brush your teeth do you make sure you have government authorization to do so? Also, I hope the toothbrush and the toothpaste were OKed by a government bureaucrat, because thinking for yourself is hard!
- throwaway86328 9y ago
  You laugh but it is no laughing matter. Securities fraud is a big problem, which is why the SEC takes it so seriously.
  - googletazer 9y ago
    Good luck being the world policeman and shutting down ICOs (most of which copied ethereum's model and are based in Switzerland), and the investors. The SEC is there to ensure bankers and early investors (those who by virtue of large wealth are "accredited" to invest early and make out with most gains) get the largest piece of the pie of any IPO. ICOs liberalize this landscape.

JumpCrisscross 9y ago

Disclaimer: I am not a lawyer and this is not legal advice. Don't take investment advice from my Internet comments. > isn't it also illegal to buy unlicensed securities There are "safe harbors" like Regulation D [1]. This is how private companies issue securities. There are still rules about to whom you can sell your securities and the minimum information you have to make available to them. Needless to say, I have not seen an ICO promoter make use of these safe harbours. [1] https://www.sec.gov/fast-answers/answers-regdhtm.html https://www.sec.gov/fast-answers/answers-regdhtm.html

throwaway86328 9y ago
I highly doubt most ICOs qualify for exemptions, let alone notified the SEC of their intentions to make a public offering.

Snackchez 9y ago

https://www.sec.gov/news/press-release/2017-131 https://www.sec.gov/news/press-release/2017-131 They've been warned, but what does that even mean?

throwaway86328 9y ago
IANAL, but I interpret it to mean that both buyers and sellers are responsible for understanding what they're transacting, which are likely securities. Unlicensed securities that are not exempt from the law are illegal to buy or sell. The implications seem clear to me. Again, IANAL, but a lot of people seem to be commiting felonies, even if they don't know it yet. These ICOs can ruin the lives of more than just the owners.

googletazer 9y ago

>unaccredited investors unaccredited investors, oh my! When you brush your teeth do you make sure you have government authorization to do so? Also, I hope the toothbrush and the toothpaste were OKed by a government bureaucrat, because thinking for yourself is hard!

throwaway86328 9y ago
You laugh but it is no laughing matter. Securities fraud is a big problem, which is why the SEC takes it so seriously.
- googletazer 9y ago
  Good luck being the world policeman and shutting down ICOs (most of which copied ethereum's model and are based in Switzerland), and the investors. The SEC is there to ensure bankers and early investors (those who by virtue of large wealth are "accredited" to invest early and make out with most gains) get the largest piece of the pie of any IPO. ICOs liberalize this landscape.