The creation, issuance, distribution and sale of digital assets
can implicate a variety of U.S. federal and state securities laws.
Whether any digital asset constitutes a "security" under
U.S. laws is a highly complex, fact-driven analysis that has and is
expected to evolve over time, and the U.S. Securities and Exchange
Commission (the "SEC") generally does not provide advance
guidance or confirmation on the status of any particular instrument
as a security.
Recent statements by the SEC indicate that it has adopted a
broad definition of what constitutes a "security" with
respect to digital assets. In most cases, there is no assurance as
to what conclusion the SEC or a court of competent jurisdiction
would reach. As such, it is imperative that token issuers seek
competent legal advice in this regard prior to conducting any token
generation events. Read this whitepaper to learn more about
this and other important blockchain topics.
