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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 publi
by 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 agoYes 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 agoThey 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.