Securities laws development in blockchain and digital cryptocurrencies

After an overview of the US securities laws and regulations, we now turn to how the SEC gradually became involved in regulating digital tokens offerings and trading. We will review the SEC's analysis of how the current securities regulations apply to this regime as new issues emerge.

Some of the early warnings and guideline on investments in digital tokens are as follows.

SEC alerts

Let's look at the following few alerts:

• Alert on the use of Bitcoin as a Ponzi scheme in July 2013 – SEC versus Shavers:

This early alert made by the SEC involving digital tokens was based on the Shavers case in 2013.

In that case, the organizer of an alleged...