Security tokens and the SEC
Quite often, when security tokens are discussed, the SEC is mentioned. This is because the US Securities and Exchange Commission is an independent federal government agency responsible for protecting investors and maintaining the fair and orderly functioning of the securities markets of the largest economy in the world. So, what the SEC does matters to the rest of the world.
The goal of the Securities Act of 1933 was to remove the information discrepancies between promoters and investors. In a public distribution, the Securities Act prescribes the information investors need to make an informed investment decision, and the promoter is liable for material misstatements in the offering materials.
According to the 15 US Code § 77b (a)(1), the term security means any note, stock, bond, profit-sharing agreement, investment contract, option, transferable share, or voting-trust certificate. (https://www.law.cornell.edu/uscode/text/15/77b). This is a non...
