Token sales, also referred to as “Initial Coin Offerings” (ICOs), can raise capital for new companies, or offer prospective users a means of participating on a platform, for example. Token sales have become a critical component for launching a new blockchain application or platform and are instrumental in distributing the token that is used for accessing or utilizing the platform. In 2018 alone there have been more than 270 token sales raising over $5.7 billion. Further, protecting purchasers, while nurturing this new innovation, is critical. The Chamber therefore supports policies that protect purchasers and facilitate appropriate disclosures while promoting the growth of new blockchain applications and platforms through token issuances.
SEC Statement on Potentially Unlawful Promotion of Initial Coin Offerings and Other Investments by Celebrities and Others
November 1, 2017