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by iheartmemcache 3169 days ago
I was primarily addressing parent re: the classification of security vs. commodity. I agree with you 100% that the danger lays with the investor and it falls under the designation of a 'security' without a doubt[0].

And again, you're right - the SEC doesn't take kindly to unregulated capital raising. (There's a reason why the designation of 'accredited investor[2]' had capital requirements to begin with-- to be legally invest in an ICO, or any block-chain based currency, you have to either have a net worth of >1MM or an earned income of >200k (>300k if filing with a spouse) for the last two years.) Investor safety isn't really what we're discussing here though, so much as which federal agency has regulatory control.

I was going to basically say what JumpCrisscross said, but he beat me to the punch[3]. Until we see some federal case law to set precedent, it's anyones game.

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[0] "On July 25, 2017, the SEC issued a Report of Investigation under Section 21(a) of the Securities Exchange Act of 1934... determining that DAO Tokens were securities."

[1] https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_co...

[2] https://investor.gov/additional-resources/news-alerts/alerts...

[3] After clicking on his profile, it was all made clear, haha