SEC Issues Investigative Report Concluding DAO Tokens, a Digital Asset, Were Securities

in #ether7 years ago

Yesterday the SEC issued an investigative report, which can be found here https://www.sec.gov/news/press-release/2017-131

What I wanted to point out is that from yesterday all issued tokens from ICO are deemed to be securities and hence must be regulated.

It was Ether that was hit the most and its DAO division. I wonder how it will affect its price.

"The SEC's Report of Investigation found that tokens offered and sold by a "virtual" organization known as "The DAO" were securities and therefore subject to the federal securities laws.
The Report confirms that issuers of distributed ledger or blockchain technology-based securities must register offers and sales of such securities unless a valid exemption applies. Those participating in unregistered offerings also may be liable for violations of the securities laws. Additionally, securities exchanges providing for trading in these securities must register unless they are exempt.
he purpose of the registration provisions of the federal securities laws is to ensure that investors are sold investments that include all the proper disclosures and are subject to regulatory scrutiny for investors' protection."

Suppose this move by the US officials will inspire even more motivation towards creating dark net and completely anonymous blockchain startups. Why disclose founders identities if the trust is based on no trust and the power of contracts?

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Excellent write!