Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

While I cannot give legal advice, generally the only acceptable path is for a Reg-D filing with the SEC. This means that your token is considered a security, but the filing is technically an "exemption" filing.

So far I believe the only other projects that have pursued Reg-D filings did so under the SAFT framework, which is currently under scrutiny by the SEC. We may be the first project to raise money for a token that itself is a transferrable security, and pursue filing under Reg-D.

honestly it's a bit of a mess right now



Be careful regarding its transferability.

Under rule 144 you can have your original investors trade it after a lock-up period. But even with that, Reg D securities are not transferred very easily.

I had to learn all this when raising money for Qbix the last 7 years.

You MAY be able to have some sort of derivatives which are traded, like taxi medallion leases, and maybe they won't be considered securities since there is no expectation of profit (but then why do people buy them?)

IANAL


Under current rules, after 1-yr lockup period investors are able to sell to other accredited investors.

Hopefully by then we'll have some new, regulated exchanges that can automate the process.


Hopefully the investors realized that their lockup may extend longer than they thought.


I am not a lawyer, but my understanding is that accredited investors do not need an exchange or a regulated entity to sell their tokens to other accredited investors. They have some compliance burden, but can, under the right circumstances, comply with that burden absent a regulated exchange or broker dealer.

I am not a lawyer, and the above paragraph may be incorrect.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: