Partner Kayvan Sadeghi was quoted on the U.S. Securities and Exchange Commission’s (SEC) guidance and enforcement actions applying securities laws to digital assets.
Kayvan said, “The [securities] law is broad enough and fact-based enough that it is very difficult to have comfort that you’re not going to fall into the bucket of a security. It seems clear that the SEC starts with the presumption that if it’s an ICO it’s likely to be a securities offering, so projects are staying out of the United States because there is no easy way to get comfort that a token won’t be treated as a security.”
Cryptocurrency year-over-year fundraising reporting has shown that ICOs dropped 95 percent last year.
“I think people back in the 2017 to 2018 time frame were trying to come up with creative solutions and were willing to take chances,” Kayvan said.
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