SEC expressed its position on the issue of ICO

Official United States Securities and Exchange Commission statement regarding initial coin offering - tokens should be considered securities
26 July 2017   792

Initial coin offering (ICO) is a means of crowdfunding the release of a new cryptocurrency

The United States Securities and Exchange Commission (SEC) issued an official statement in which it expressed its position on the issue of the initial coin offering (ICO). According to the SEC, tokens should be considered securities along with stocks with the traditional exit of companies to the stock exchange.


Distributed database that is used to maintain a continuously growing list of records, called blocks

This decision was made by the SEC following an investigation into the hacking of the decentralized autonomous organization The DAO in June 2016. Then the attackers took advantage of the vulnerability in the code and stole tokens worth about $ 50 million.

In the report, the SEC warns market participants that the sale of digital assets by "virtual" organizations that use blocking technology for this purpose is subject to the requirements of federal securities laws.

The SEC's Report of Investigation found that tokens offered and sold by a "virtual" organization known as "The DAO" were securities and therefore subject to the federal securities laws. The Report confirms that issuers of distributed ledger or blockchain technology-based securities must register offers and sales of such securities unless a valid exemption applies. Those participating in unregistered offerings also may be liable for violations of the securities laws. Additionally, securities exchanges providing for trading in these securities must register unless they are exempt. The purpose of the registration provisions of the federal securities laws is to ensure that investors are sold investments that include all the proper disclosures and are subject to regulatory scrutiny for investors' protection.

From United States Securities and Exchange Commission official statement

As the Commission notes, such measures are needed to protect investors and control their actions.

The SEC is studying the effects of distributed ledger and other innovative technologies and encourages market participants to engage with us. We seek to foster innovative and beneficial ways to raise capital, while ensuring – first and foremost – that investors and our markets are protected. 

Jay Clayton
Chairman, SEC

With regard to the investigation of the The DAO hacking and the possible violation of federal securities laws by organizations and individuals, the SEC notes that although the fund was positioned as a "crowdfunding contract", it did not meet the relevant regulatory requirements. In particular, The DAO was not a broker / dealer or a fundraising portal, registered with the SEC and the Financial Institutions Regulatory Agency (FINRA).

Nevertheless, considering all the circumstances, the SEC decided not to bring charges against the participants of the deal with The DAO. However, the Commission warned market participants that federal securities laws extend to all transactions with assets in the US, regardless of whether the organization is real or virtual, and whether transactions were conducted for dollars or crypto currency.

In addition, the SEC issued an explanation for potential investors about the peculiarities of the ICO and their possible dangers.

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ACTN Token Distribution About to Close

The users have last chance to get their 1000 free ACTN tokens as the token distribution for registration closes on March 1, 2018
21 February 2018   45

The Action Coin Platform represents over 500,000 Action collectors and customers from more than 200 countries and territories. It is the basis of an incentive-driven rewards program with “points” that are rewarded in the form of a decentralized, blockchain-based digital asset known as Action. Action may be redeemed for member-only discounts on a growing list of products and services offered through its business network.

ActionCoin has announced that the users who sign up are entitled to receive 1,000 FREE ACTION during the official token distribution event (Airdrop) scheduled to commence on March 1, 2018.

The two first phases of ACTN token pre-sale are already finished, and the third one will be held from February 21 to 25, with 250,000,000 Action tokens to be sold for $0.02 USD each.

BTC, ETH, XRP, XLM, LTC, NXT are accepted during the presale. The current market rate will be locked in at the beginning of each presale phase, for the entire phase.