Rescission In The Age Of Cryptocurrency

By Robert W. Pommer III and Darren J. Sandler (September 25, 2017, 10:48 AM EDT) -- In a recent report of investigation, the U.S. Securities and Exchange Commission weighed in for the first time on the circumstances under which a virtual currency token will be deemed a security and subject to the federal securities laws.[1] The implications are far-reaching: any cryptocurrency token deemed to be a security must be registered with the SEC or otherwise eligible for an exemption from registration requirements; issuers and other participants involved in the sale of unregistered cryptocurrency-securities may be subject to liabilities and other remedies under state and federal securities laws. This article discusses the remedy of rescission and its application...

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