Client Login Portal
    • addthis
    • link : Client Login
    • knowledge network
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Network
    • Contact Us
    Labaton Sucharow
    • addthis
    • link : Client Login
    • knowledge network
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Network
    • Contact Us
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Contact Us
    • Knowledge Network
    • Client Login
    • Search
    • addthis
    • link : Client Login
    • knowledge network
    Labaton Sucharow
    • News & Events
      • Press Room
      • Published
      • Events
    • Digital Library
      • Videos
      • Podcasts
      • Webinars
    • News & Events
      • Press Room
      • Published
      • Events
      • The Liaison
    • Digital Library
      • Videos
      • Podcasts
      • Webinars

    Courts Must Soon Tackle Critical Questions About ICOs

    Law360
    April 26, 2018

    In a recent article on Law360, Michael Canty and Ross Kamhi analyze the emergence of cryptocurrency and the potential legal implications of an Initial Coin Offering (ICO).

    An ICO allows cryptocurrencies to raise capital for a new venture similar to the way a startup would through an Initial Public Offering (IPO), however in this instance, investors receive a “token” as opposed to company stock. In 2017, more than 200 ICOs were executed, a more than 400% increase over the year before. With this increase comes the increase in opportunity for fraud.

    The trouble with ICOs and crypto companies in general is that they are entirely unregulated, not a single token sale has ever been registered with the Securities and Exchange Commission. Michael and Ross explore the nature of tokens, and whether or not they can be considered securities under Federal law. Regulators will look to the Howey test, which famously defined a security, for guidance. But the Securities and Exchange Act of 1934 protects only those securities that are listed on domestic exchanges, and therein lies the issue.

    For more information, please visit our Knowledge Network.

    Useful Links

    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Center

    Our Locations

    footer-list-map_icon New York
    140 Broadway
    New York, NY 10005
    212-907-0700

    footer-list-map_icon Delaware
    222 Delaware Avenue, Suite 1510
    Wilmington, DE 19801
    302-573-2540

    Useful Links

    footer-list-map_icon Washington, D.C.
    1050 Connecticut Avenue, NW, Suite 500
    Washington, D.C. 20036
    212-907-0700

    Stay Connected

    • Facebook
    • Twitter
    • LinkedIn
    Labaton Sucharow
    • Attorney Advertising Disclaimer
    • Privacy Policy
    • Transparency in Coverage Rule
    • labaton.com
    • Labaton Sucharow All Rights Reserved 2023

    Attorney Advertising Disclaimer

    The materials appearing on this website are provided for informational purposes only and do not constitute legal advice. You should not take action based upon this information without consulting legal counsel. This site is not intended to create an attorney-client relationship. The hiring of a lawyer is an important decision that should not be based solely upon any single source of information, including advertising on this website. You may ask us to send you further information about us, and we urge you to review other sources of information about us.