Category Archives: 03 – Cryptocurrency

Source: Blockchain and Initial Coin Offerings: SEC Provides First U.S. Securities Law Guidance

• The Report seems to distinguish between Ether, labeled a virtual currency, and DAO Tokens, labeled a security. Market participants may take comfort in this distinction, as it supports the view that not all blockchain tokens are securities under the U.S. Federal Securities Laws.
• In several places, the Report emphasizes the facts and circumstances nature of the Howey test, further buttressing the view that not all blockchain tokens are securities. Each token needs separate analysis to see if it meets the Howey
• With the Report, the SEC has affirmatively asserted its jurisdiction over security tokens. Regardless of the seller’s identity and location, any sale of a security token by a U.S. entity or to any U.S. person(s) will be subject to the U.S. Federal Securities Laws. For these purposes, U.S. persons include individuals and legal entities resident or located in the United States.

The Report seems to distinguish between Ether, labeled a virtual currency, and DAO Tokens, labeled a security. Market participants may take comfort in this distinction, as it supports the view that not all blockchain tokens are securities under the U.S. Federal Securities Laws.In several places, the Report emphasizes the facts and circumstances nature of the Howey test, further buttressing the view that not all blockchain tokens are securities. Each token needs separate analysis to see if it meets the HoweyWith the Report, the SEC has affirmatively asserted its jurisdiction over security tokens. Regardless of the seller’s identity and location, any sale of a security token by a U.S. entity or to any U.S. person(s) will be subject to the U.S. Federal Securities Laws. For these purposes, U.S. persons include individuals and legal entities resident or located in the United States.

Source: Debevoise & Plimpton Discusses SEC View of Blockchain Tokens as Securities | CLS Blue Sky Blog