4 ms·

What kind of regulation do you think would come? ICOs are already restricted in the us to accredited investors (if i understand correctly). Do you see something

What kind of regulation do you think would come? ICOs are already restricted in the us to accredited investors (if i understand correctly). Do you see something beyond this?

AlexCoventry 9y ago
The majority of ICOs are not restricted to accredited investors. There will be penalties for failure to register securities, for failure to meet reporting and other registered securities requirements, and shareholder clawback lawsuits.
- wrench604 9y ago
  The majority of those ICOs are not available to us citizens though. Can you name a recent ICO that allowed non-accredited us investors to participate?
  - AlexCoventry 9y ago
    > Switzerland-based Tezos said it did not specifically exclude investors from any country from participating. https://www.cnbc.com/2017/07/18/hot-digital-currency-trend-minting-millions-off-limits-to-us-investors.html https://www.cnbc.com/2017/07/18/hot-digital-currency-trend-m...
    - relyio 9y ago
      There were lots of disclaimers saying: >"Every potential participant in the fundraiser is responsible for determining the legality of participation within their jurisdiction."
      - AlexCoventry 9y ago
        It was totally legal for US residents to participate, as far as I know. I believe almost all the securities-law obligations resulting from the sale are on Tezos. (Not a lawyer.) The only obligation on buyers might be that they can't resell it without being guilty of selling an unregistered security themselves.
    - wrench604 9y ago
      This ico happened before the sec bulletin was issued: https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_coinofferings https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_co... Do you have any more recent examples?
      - AlexCoventry 9y ago
        I haven't been following closely, recently, but literally the first one I checked has no check on residency [0], which is enough to bring it under SEC jurisdiction if the sale goes over other thresholds.[1] Sales before and after the bulletin are subject to the same laws. [0] https://etherparty.io/ico/contribute https://etherparty.io/ico/contribute [1] https://www.sec.gov/divisions/corpfin/internatl/foreign-private-issuers-overview.shtml#IIIA https://www.sec.gov/divisions/corpfin/internatl/foreign-priv...
- anonymous5133 9y ago
  and how exactly are they going to enforce these rules? Do you think the SEC is going to zimbabwe, congo or some other backwater country to tell these people to stop issuing ICO lol? The US federal government is not the policeman of the world my friend. People who are doing ICOs will just move to where they can have their business be successful. If USA/Europe or Asia ban ICOs then all the devs will just move to another country where it is legal, maybe russia?

What kind of regulation do you think would come? ICOs are already restricted in the us to accredited investors (if i understand correctly). Do you see something beyond this?

AlexCoventry 9y ago

The majority of ICOs are not restricted to accredited investors. There will be penalties for failure to register securities, for failure to meet reporting and other registered securities requirements, and shareholder clawback lawsuits.

wrench604 9y ago
The majority of those ICOs are not available to us citizens though. Can you name a recent ICO that allowed non-accredited us investors to participate?
- AlexCoventry 9y ago
  > Switzerland-based Tezos said it did not specifically exclude investors from any country from participating. https://www.cnbc.com/2017/07/18/hot-digital-currency-trend-minting-millions-off-limits-to-us-investors.html https://www.cnbc.com/2017/07/18/hot-digital-currency-trend-m...
  - relyio 9y ago
    There were lots of disclaimers saying: >"Every potential participant in the fundraiser is responsible for determining the legality of participation within their jurisdiction."
    - AlexCoventry 9y ago
      It was totally legal for US residents to participate, as far as I know. I believe almost all the securities-law obligations resulting from the sale are on Tezos. (Not a lawyer.) The only obligation on buyers might be that they can't resell it without being guilty of selling an unregistered security themselves.
  - wrench604 9y ago
    This ico happened before the sec bulletin was issued: https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_coinofferings https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_co... Do you have any more recent examples?
    - AlexCoventry 9y ago
      I haven't been following closely, recently, but literally the first one I checked has no check on residency [0], which is enough to bring it under SEC jurisdiction if the sale goes over other thresholds.[1] Sales before and after the bulletin are subject to the same laws. [0] https://etherparty.io/ico/contribute https://etherparty.io/ico/contribute [1] https://www.sec.gov/divisions/corpfin/internatl/foreign-private-issuers-overview.shtml#IIIA https://www.sec.gov/divisions/corpfin/internatl/foreign-priv...
anonymous5133 9y ago
and how exactly are they going to enforce these rules? Do you think the SEC is going to zimbabwe, congo or some other backwater country to tell these people to stop issuing ICO lol? The US federal government is not the policeman of the world my friend. People who are doing ICOs will just move to where they can have their business be successful. If USA/Europe or Asia ban ICOs then all the devs will just move to another country where it is legal, maybe russia?