[ourmandave]

The SAFT lets you sell tokens to speculative investors, without having the tokens themselves be securities: You wrap the tokens in securities for the speculators, and then unwrap them for the eventual users.

There are still open questions about whether and how that or other approaches will work.

...But for a long time now, I and a lot of other people have thought that the basic strategy of a lot of ICO issuers -- issue tokens for money, call them "utility tokens," hype their speculative benefits, and watch the money roll in -- was obviously illegal, and the SEC didn't seem to be paying attention. Now we know it is.