Initial Coin Offerings and U.S. Securities Regulation: Challenges and Perspectives

1 Int'l J. Fin. Serv. 9 (2018)

6 Pages Posted: 12 Jul 2018

Date Written: March 1, 2018

Abstract

Blockchain token sales, often referred to as “initial coin offerings” (“ICOs”), have become an attractive fundraising and investment alternative for entrepreneurs and investors in the field. Meanwhile, compliance with securities laws has become an area of heated discussions among blockchain enthusiasts, commentators, lawyers and regulators, along with other areas of scrutiny such as tax, anti-money laundering and consumer protection.

In the United States in particular, there has been a growing concern in the blockchain and investment community over the securities law framework applicable to ICOs, which the SEC Chairman identified as one of the two new priorities for the SEC. While market participants have started to elaborate private ordering, contract-based solutions, U.S. securities regulators and lawmakers are faced with the challenge of fostering blockchain innovation and keeping the U.S. at the forefront of the growing ICO market while fulfilling their core mission of investor protection.

This paper is an overview of the U.S. securities law framework applicable to ICOs as of March 1, 2018. It is for general information purposes, and is not intended to be and should not be taken as legal advice.

Keywords: Initial Coin Offerings, ICO, Blockchain, Securities Regulation

JEL Classification: G23, G28, K22

Suggested Citation

Dambre, Romain, Initial Coin Offerings and U.S. Securities Regulation: Challenges and Perspectives (March 1, 2018). 1 Int'l J. Fin. Serv. 9 (2018), Available at SSRN: https://ssrn.com/abstract=3187355

Romain Dambre (Contact Author)

Shearman & Sterling LLP ( email )

599 Lexington Avenue
New York, NY 10022-6069
United States

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