Dear Crypto Community:
Offering a coin or token to the public for sale has recently become more difficult. The SEC has determined that if this occurs, and the purchasers of the coins or tokens are passive investors, then it becomes a security and falls under their jurisdiction.
What does this mean? It means that you must first be registered with the SEC which means jumping through hoops and following rules such as creating a prospectus for the review of the SEC; registering with the SEC and many other tasks that will require legal expertise, time and commitment.
Ignore the SEC at your peril. Unregistered securities sold to the public can lead to civil and even criminal consequences.
There are some exemptions to being considered a security. These require study, scrutiny and for the most part should be handled by an attorney on behalf of the Dev/Owners of the coin or token. An exemption must be requested and approved.
I hope this post makes Dev's aware that there are likely SEC requirements that they must follow for a public offering. My law firm will be happy to walk you through this process.
Myself, George D. Greenberg, Esq. and my associate attorney, Huong X Lam, Esq., handle most areas of crypto-currency law and provide related business advice. We welcome your questions here.
Please ask related questions only if you are either invested in crypto, in the process of starting, or well on the way to a crypto business venture. This particular blog is for problem solving and not philosophical issues.
Happy Mining:
George D. Greenberg, Esq.
www.attorneybitcoin.com
