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Ironically, it is the SEC and it's regulation that made Bancor structure their ICO the way they did. To escape being classified as a security, you have two opti
by Hermel 9y ago
Ironically, it is the SEC and it's regulation that made Bancor structure their ICO the way they did. To escape being classified as a security, you have two options: either give the tokens away for free, or promise nothing. Most crypto startups do the latter.
- totalZero 9y agoNot quite. In the USA, classification as a security is usually determined using a four-pronged legal standard called the Howey Test. A security is: 1. An investment of money, 2. In a common enterprise, 3. With an expectation of profits, 4. Predominantly from the efforts of others. Selling something without making any promises doesn't necessarily preclude expectation of profits.