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0 pointszherbert8y ago0 comments

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

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3 comments · 1 top-level

EGreg8y ago· 2 in thread

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

zherbertOP8y ago

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.

wmf8y ago

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

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