SEC Releases its Guidance for Crypto Tokens (ICOs)

[wry]

Given the complete collapse of ICOs and token issues this year, it may not be the headline it would have been last year, the US based Securities and Exchange Commission (SEC) released its guidance for tokens today.

As most of you know, Bitcoin is regarded by regulators as a commodity not a security.  There is no organization directing Bitcoin promising returns in exchange for investing in it.  Compare this to something like Ethereum where there is a foundation that directs development and sold tokens to investors.

The name to see if something is a security is called the Howey test:

Quote

Referencing the oft-cited Howey test, the guidance highlights “reliance on the efforts of others,” reasonable expectation of profits, how developed the network is, what the tokens’ use cases might be, whether there is a correlation between a token’s purchase price and its market price and a host of other factors.

While I have some issues, this is at least a start and may help further advance alt coin and project development in the USA.

Link:  https://www.coindesk.com/the-sec-just-released-its-crypto-token-guidance

[blueprints]

I remember one of the first things that the USA began to address thats crypto related was the ICO's. So many people got scammed through fake ICO's though, im pretty sure thats one of the things that started getting their attention.