If you want non-accredited investors to participate in your ICO or token offering, you are not limited to offering utility tokens that are not securities. You can offer and sell securities or security tokens to non-accredited investors. Here are three exemptions under the federal securities laws, which allow you to sell security tokens to non-accredited investors. This is a very general overview, which is not by any means comprehensive: Regulation A+ Under Regulation A+, you
If you are doing a security token offering or STO, then you are concerned about complying with federal securities laws. This means you have to either register your STO or find an exemption to registration. Here are three exemptions you can use for your STO. The main points of each are highlighted, but this is very, very general. I will go into more detail in future posts: Regulation A+ - Allows you to raise up to $50 million. You can advertise even before filing disclosures w
The SEC has used the Howey Test for investment contracts to determine whether the offer or sale of certain blockchain tokens are investment contracts and thus, securities. Under the Howey Test, the offer or sale of your tokens are offers or sales of securities if there is an investment of money in a common enterprise and the buyer reasonably expects profits from the efforts of others. In English, it boils down to this: if you are selling a token to someone who buys it expecti
Here is a video for those of you who prefer information in video form. Takeaways are as follows: 1/It's easy to violate the #antifraud rules of the #securities laws--just one tweet can do it.
2/Consequences for violating such laws are severe. $20MM is a slap on the wrist compared to what the #SEC was asking for.
3/Just 1 tweet can cost $40MM, so think before you speak. Read the blog post for more information. To schedule a free strategy session, click here. This article is