SEC weighs in on DAOs – yes digital tokens are indeed securities

In what may be a seminal ruling, the Securities and Exchange Commission (SEC) has said that a so-called digital token qualifies as a security under the Securities Exchange Act of 1934. This was a case involving a “crowd governance” scheme on a blockchain, called a Digital Autonomous Organization (DAO), that allowed investors to purchase tokens representing an interest in future earnings from projects funded by the sale of the token. The tokens also came with rights that included voting privileges on which projects should be funded by the DAO.
This content requires a Finadium subscription. Articles with an unlocked symbol can be accessed with free registration. Log in or create a free account by signing up here..

Related Posts

Previous Post
Reuters: US Treasury debt issuance plans could increase repo costs, tighten credit
Next Post
We don’t envy the Bank of Japan’s choices in Quantitative Easing

Fill out this field
Fill out this field
Please enter a valid email address.


Reset password

Create an account