Bitcoin Forum

Does that mean that ICO is not prohibited by SEC now?

https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_coinofferings

I don't think it was ever illegal for Americans to participate in ICOs. What has happened was that Securities and Exchange Commission declared that some of coins sold in ICOs are actually securities and therefore are subject to the agency's regulation. As a result companies conducting ICOs voluntarily ban US customers, because they don't want to be subjected to SEC regulation.

Yes, you are absolutely right,in the near future I think all ICO will be regulated by the SEC.

No, this is not a ruling, just a leaflet.

It is the same as before, if it's not a security, they don't care.

current ICO situation will not last for long :(

How do we define "security" really?

And the result of that regulation is the "ICO-issued" tokens can't function as cryptocurrencies.
The details:

Are Most Cryptocurrencies Doomed to Collapse — because they’re “ICO-issued”? (https://bitcointalk.org/index.php?topic=2145300)

Good? I've seen too many people getting ripped off with these things - too much scamming now.

Under the Howey Test, a transaction is an investment contract if:

It is an investment of money
There is an expectation of profits from the investment
The investment of money is in a common enterprise
Any profit comes from the efforts of a promoter or third party

http://consumer.findlaw.com/securities-law/what-is-the-howey-test.html

The degree of legality depends on the law of each country. As far as I know, there are only a few countries that allow you to use virtual currency in your life, and that is the country where it is legal for you to invest in ICOs.

Most of these regulations are in favor of big cooperate banks/companies, because they see ICO's as a threat. Not to say that possibly many of ICO's have deeper and darker intentions in what they do with their funds. Typically, to develop and maintain a coin doesn't take millions of dollars, or even in some cases hundreds of thousands of dollars, there is a great warranted restriction to see what these guys actually do with their money, and where it's actually coming from.

Some ICO's are scams, some are schemes and some are legitimate.

There always be something to rip people off. ICOs bring a lot of innovation, if it was more about ripping it would not last for so long

Thank you for the "Howey Test". Now, we need to clearly define money:
Option 1) Look up the official definitions.

Option 2)
(Preferred) The day this forum was started (for example), was Bitcoin considered "money" in the eyes of "the law"?
Either way, BTC clearly had no real-world "value" at that time.

Exactly, when did Bitcoin become "money" (or property, Hello IRS), and why? 


<Original topic>
Americans can now buy ICOs?
We are not banned from buying tokens.

More importantly, American companies are not allowed to get funding from their own ICO, unless they are very foolish or moving soon to another country more friendly to business.

https://www.law.cornell.edu/uscode/text/31/5312

(3) “monetary instruments” means—
(A) United States coins and currency;
(B) as the Secretary may prescribe by regulation, coins and currency of a foreign country, travelers’ checks, bearer negotiable instruments, bearer investment securities, bearer securities, stock on which title is passed on delivery, and similar material; and
(C) as the Secretary of the Treasury shall provide by regulation for purposes of sections 5316 and 5331, checks, drafts, notes, money orders, and other similar instruments which are drawn on or by a foreign financial institution and are not in bearer form.

Thanks.

ICOs should probably mint the coins with our favorite footballer or Pikachu virtually so that we can tell Howvey it's a virtual good not for profit :)