What is SEC and why it is important for ICOs to follow its’ rules?

10 000 question challengeCategory: Law and regulationsWhat is SEC and why it is important for ICOs to follow its’ rules?
tokenh6_wp Staff asked 3 months ago

1 Answers
tokenh6_wp Staff answered 3 months ago

The United States Securities and Exchange Commission (SEC) is in charge of regulating financial markets in the U.S., and they have jurisdiction over new ICOs when they’re sold to American consumers. While it’s possible to create an ICO that’s legal in the United States, the SEC follows a set of rules known as the Howey Test to determine if the ICO is a tradeable security or not. ICOs that fail the Howey Test are subject to all the same regulations as public stocks, and they must be registered with the FTC and follow strict securities law.
https://www.draglet.com/ru/ico-law-compliance

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