Ponzi aside, let's say it's the greatest cryptocurrency idea. The SEC has right to use their Howey Test to determine whether it's a security. Based on 1,2,4 below, is this not ICO's?
Under the Howey Test, a transaction is a security (or investment contract) if:
1. It is an investment of money
2. There is an expectation of profits from the investment
3. The investment of money is in a common enterprise
4. Any profit comes from the efforts of a promoter or third party
Based on their recent cyber division being announced, there is seemingly a strong possibility of review/conviction if launching an ICO as a US citizen, no? Soliciting an unregistered security carries 20yr prison term. Are dev's factoring this as possible risk?
Under the Howey Test, a transaction is a security (or investment contract) if:
1. It is an investment of money
2. There is an expectation of profits from the investment
3. The investment of money is in a common enterprise
4. Any profit comes from the efforts of a promoter or third party
Based on their recent cyber division being announced, there is seemingly a strong possibility of review/conviction if launching an ICO as a US citizen, no? Soliciting an unregistered security carries 20yr prison term. Are dev's factoring this as possible risk?