“If participants choose to call an ICO a security and market it as a private placement, they could still avoid a lot of securities laws; that’s still a viable route,” Kluchenek said.
“There would be transfer restrictions so they wouldn’t be trading in secondary markets, but keep in mind many ICOs were avoiding U.S. markets altogether, so the choice now becomes do I want to avoid U.S. investors or do I want to take money from U.S. investors subject to the requirements that apply.”
This article was provided by Bloomberg News.