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I think a lot of new precedents would need to be set to get a fraud conviction over an ICO. People trade Ether for tokens, not money. So they paid money for ETH

by psyc 9y ago

I think a lot of new precedents would need to be set to get a fraud conviction over an ICO. People trade Ether for tokens, not money. So they paid money for ETH, and got the ETH as promised. They traded ETH for SHT and got SHT as promised. Are these ICOs making any contractual promises that ownership of SHT gives holders certain rights, or obligates the team to do work? Because if I was doing an ICO, I sure as hell would not do that. The SEC statement on this was “Buyer Beware.”

psyc 9y ago
Interestingly, the SEC charged two ICOs with violations of securities laws this very day! This is a first as far as I know, and makes clear that the SEC is able and willing to regulate ICOs as securities if they meet certain criteria: http://consumer.findlaw.com/securities-law/what-is-the-howey-test.html http://consumer.findlaw.com/securities-law/what-is-the-howey...