[Isomatik]

I think the biggest hurdle regulators will have to overcome if they want anything other than a blanket ban on ICOs will be verifying "good faith" execution of their business plans.

If you create a cryptotoken that has a real business purpose and sell it with the expectation that it will be redeemable for that purpose (basically selling gift cards for a service that doesn't exist yet), and a secondary market forms that appears to believe that the tokens are stock and trades them accordingly, are you guilty of securities fraud? What if you never actually develop that service, would that impact your case? If so, how do you distinguish between something that was a ponzi from the start and a mismanaged project that failed to deliver?