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True, if they comply with the requirements. I just wonder if DAOs, which typically have tokens available to any public purchaser, would fall into a category of

True, if they comply with the requirements. I just wonder if DAOs, which typically have tokens available to any public purchaser, would fall into a category of securities and therefore public securities, which would violate maybe not the requirements of the business entity but other laws. From what I understand, and I admittedly don't feel certain on this at all, LLCs are private entities where ownership can only be offered privately, not open to be sold on a public exchange, and many DAOs plan to sell their tokens on public exchanges. Again, I think laws can change and personally think we need more global overarching governance to deal with internet interactions, yet think that some of these things are quite incompatible/contradictory to current law.

freejazz 5y ago
Securities can be sold privately. To be sold publicly, a security must comply with state and federal securities regulations. If a DAO sells its securities publicly, that is fine so long as they comply with the relevant regulations. The relevant regulations typically make it impractical for a firm to sell their security publicly unless they are being listed on a stock exchange in an IPO. That might not be the case in a DAO. LLCs are just one business entity type and a DAO does not have to be an LLC.
- jimkleiber 5y ago
  Yes they can be sold privately but only to accredited investors and a few other types, right? Also, to sell publicly, I'm pretty sure they need to register with the SEC, but unsure, do they have to list on a stock exchange?
  - freejazz 5y ago
    They don't have to list on a stock exchange, there is just no reason to comply with SEC public sec regs if you aren't going to because they are incredibly arduous. They can be sold privately in a bunch of different ways and not necessarily just to accredited investors depending upon how the investment is structured and who it is offered to.

freejazz 5y ago

Securities can be sold privately. To be sold publicly, a security must comply with state and federal securities regulations. If a DAO sells its securities publicly, that is fine so long as they comply with the relevant regulations. The relevant regulations typically make it impractical for a firm to sell their security publicly unless they are being listed on a stock exchange in an IPO. That might not be the case in a DAO. LLCs are just one business entity type and a DAO does not have to be an LLC.

jimkleiber 5y ago
Yes they can be sold privately but only to accredited investors and a few other types, right? Also, to sell publicly, I'm pretty sure they need to register with the SEC, but unsure, do they have to list on a stock exchange?
- freejazz 5y ago
  They don't have to list on a stock exchange, there is just no reason to comply with SEC public sec regs if you aren't going to because they are incredibly arduous. They can be sold privately in a bunch of different ways and not necessarily just to accredited investors depending upon how the investment is structured and who it is offered to.