The US Securities and Exchange Commission has stated:
- ICOs… may be securities offerings, and fall under the SEC’s jurisdiction of enforcing federal securities laws.
- ICOs that are securities most likely need to be registered with the SEC…
- ICOs, or more specifically tokens, can be called a variety of names, but merely calling a token a “utility” token or structuring it to provide some utility does not prevent the token from being a security.
- If you choose to invest in these products, please ask questions and demand clear answers.
How would token holders and the project be effected should the SEC rule ENG tokens to be securities?