The SEC regulatory "threat" issue

Jeff Davis

New Member
Jul 7, 2017
Article after article about ICOs cite the imminent "threat" of the SEC stepping in and "interfering" in the ICO wild west frenzy, provoked by the question of whether or not ICO tokens are sufficiently "security-like" for the SEC to impose regulatory oversight-slash-control.

My question for forum members: the SEC is a US agency whose jurisdiction is presumably, limited to the US, though international agreements may extend that jurisdiction to some degree. Since ICOs are internet based, not national-boundaries based, does the SEC really have the authority to assert regulatory authority over ICOs? And to the extent that ICOs are associated with business entities that are established by legal filings in some jurisdiction somewhere, is it possible to find a jurisdiction beyond the reach of the SEC?
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Staff member
Aug 19, 2015
The SEC can protect U.S. residents against securities fraud and other violations of U.S. securities laws, regardless of in which jurisdiction these securities originated.

The only type of entity that could theoretically be beyond the reach of the SEC would be a truly decentralized autonomous organization–something that has yet to materialize–so it's all uncharted territory for now.
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