Last week, the SEC called after we submitted the Corporation Finance Request Form through the Office of International Corporate Finance on behalf of ICOToday.
The phone call was expected because our ICO’s intention was to call them outright at the beginning of the ICOToday journey.
You don’t call the SEC, they call you. They want you to complete this form if you would like to get in contact with them.
What surprised us was that the agenda of the phone call was entirely outlined beforehand and clear.
What they recommended
- Discuss the token with an attorney
- Use the Howey Test and the Section 21(a) report to determine whether the token is a security
- Have the attorney reach out to the SEC with any questions
All of these recommendations were expected and easily discernible from reading the news, SEC reports, and other ICO experiences. However, there was one piece of advice that we had not considered.
Important
If we offer tokens now without first contacting an attorney, we could fall under the “securities” jurisdiction of the SEC if our tokens are in fact considered securities.
Luckily, we had not started distributing tokens to early investors. The SEC is doing an outstanding job and we fully intend to comply with their recommendations.
We got on the phone with attorneys right away. Read what they had to say in our next article.
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