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Initial Coin Offerings (ICOs) and cryptocurrency are two of the most talked about topics in the technology industry in 2018. An ICO is an event in which a new cryptocurrency project sells a portion of its cryptocurrency tokens to early enthusiasts in exchange for convertible...

Securities Exchange CommissionDuring his February 2018 testimony before the Committee of Banking, Housing, and Urban Affairs, the Chairman of the SEC reiterated the agency’s position that typical Initial Coin Offering (“ICO”) structures involve the offer and sales of securities and must register their offerings or...

In recent months, Initial Coin Offerings (“ICOs”) have grown to account for more startup funding in blockchain-based companies. Rather than seeking funding from traditional angel or venture investors to pledge capital for equity, companies are now looking toward the cryptocurrency sphere to crowdsource the sale...

An Initial Coin Offering (ICO) is an event in which a new cryptocurrency project sells a portion of its cryptocurrency tokens to early enthusiasts in exchange for convertible virtual currency (e.g., bitcoin, ether) or government fiat. ICO “tokens” or “coins” are, in essence, digital coupons...

For the past several years, internet users have been able to remain mostly anonymous while purchasing goods and services by using bitcoins as a means of payment. The cryptocurrency operates outside of banks through a decentralized peer-to-peer transaction system that is impossible for the government...

The Jumpstart Our Business Startups (JOBS) Act of 2012 eased securities regulations in order to encourage small businesses and startups to raise capital from crowdfunding. Since then, the Securities and Exchange Commission enacted Title III of the JOBS Act which encompasses regulation crowdfunding. However, Title...

"To buyers and sellers alike, 'labels matter.'" That is the first sentence in a recent case from the California Supreme Court, Quesada v. Herb Thyme Farms, Inc., Case No. S216305 (December 3, 2015). In that case, labels mattered because the California Supreme Court held that a...

FinCEN (the Financial crimes Enforcement Network, a branch of the US Treasury Department) has issued guidance in March, 2013 to clarify the applicability of the Bank Secrecy Act ("BSA") to persons creating, obtaining, distributing, exchanging, accepting, or transmitting virtual currencies. (http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html).According to the guidance, companies...

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