To date, fundraising has been blockchain’s killer use case. In 2018 alone, initial coin offerings have raised nearly $3 billion in funding, and top tier talent is flooding into the space. Token sales have the potential to unleash significant innovation at the protocol layer, help companies bootstrap network effects, and bring additional transparency and liquidity to financial markets.
However innovative they may be, ICOs do not supersede decades of U.S. securities laws and regulations. We believe that it’s best for the blockchain ecosystem if companies have appropriate legal counsel, follow relevant securities laws and run their sales compliantly.
Legal Office Hours for Token Issuers
We’ve teamed up with some of the top law firms in the country to help companies navigate the current regulatory landscape. Legal Office Hours are free of charge, and will provide companies considering a token sale access to relevant securities lawyers.
Apply here if you’re considering a token sale and would like to participate in the inaugural Legal Office Hours event. The event takes place on May 16th during Blockchain Week in New York.
This would not be possible without the generosity of participating firms including Cooley, White & Case, Wilson Sonsini, Ross & Shulga PLLC, and Brown Rudnick. We encourage more firms to join us, and help spur innovation in a compliant way.
Why You Should Run a Compliant Token Sale
Given that the SEC has taken a stance that every ICO they’ve seen to date is a securities offering, all token sales (selling to U.S. investors) currently fall under U.S. securities laws. To be compliant, issuers would need to register with the SEC, or find an exemption.
Most token sales to date have used Rule 506(c) of Regulation D, which covers the general solicitation of securities, but there are also Regulation S, Regulation CF, and other exemptions. You should talk to a lawyer with experience in the space to learn which exemption is best suited for your sale.
While we are optimistic that these laws will continue to evolve in the space — especially around ‘utility tokens’ — current regulations are already removing uncertainty, clearing out bad actors, and sparking legitimate entrants into the space.
We believe that for the blockchain ecosystem to succeed, innovation should come from anywhere, and not be limited by a company’s geography, resources, or ability to access experienced legal counsel to find the right exemption. It is important for companies to have good legal representation, that can advise on the unique needs of your project — and we’re here to help.
Learn more about The Current State of ICOs, including an overview of the most common exemptions from SEC registration.
Apply to the inaugural Legal Office Hours by answering a few questions.
About CoinList
Launched in 2017, CoinList provides services for the next generation of technology companies. CoinList is where digital asset companies manage their token sales and is the place for investors to discover quality projects. The CoinList platform has processed more than $400 million since mid-2017, has thousands of accredited investors on the platform, and supported one of the largest ICOs of 2017. For more information, visit coinlist.co
