Creating an ICO that uses the generated proceeds to invest in US equities and distributing the dividends to coin holders. Sounds like a good idea but could get into trouble with the SEC?
If you're creating a vehicle that invests in equities and distributes dividends (sounds like a mutual fund), you would need to register it with the SEC and comply with all the laws and regulations that govern such investments (e.g., reporting dividend payments and capital gains distributions to the IRS on 1099 forms, etc.).
You're using an ICO to try to get around the limitations the SEC has on investing in US equities. IANAL, but Im going to go with YES that's illegal. And, as a general rule to all looking to get rich quick with ICOs, hire a lawyer.
Well is it really trying to get around SEC limitations?
The only reason that I bring up ICO is because there is a massive amount of wealth being hoarded in ETH that can be used to generate returns for the owners.
