SEC Says ICO Doesn't Need To Register As Security

By Rachel Graf (April 3, 2019, 8:42 PM EDT) -- Officials at the U.S. Securities and Exchange Commission issued a no-action letter Wednesday allowing an unregistered initial coin offering to proceed, finding it didn't meet the definition of a security laid out in staff guidance released alongside the letter.

For a digital asset to be considered a security there must be an "investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others," as determined by the U.S. Supreme Court's 1946 Howey decision, according to the SEC staff guidance.

In its no-action letter to TurnKey Jet Inc., which provides air charter...

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