SEC Registration Exemptions - Token Issuer Cheat Sheet

Pros / Cons breakdown of SEC Reg. Exemptions

** Token Issuer Cheat Sheet **

If you are planning a sale of prefunctional tokens - - i.e., you are fundraising to develop a network for future token use - - it is recommended to review SEC Registration Exemptions. This doubly applies if your tokens arguably represent equity, so-called security tokens.

Gauging traditional compliance obligations under these common exemptions for early-stage funding (and avoiding liability for selling unregistered securities) should remain top-of-mind.

Nonetheless, this companion document, Token Sale Governance: Principles, Practices and Approaches, reflects relevant industry best practices for sales of consumer tokens that should also be adopted for prefunctional/security token sales (if not otherwise required), given informational asymmetries and heightened security risks of digital asset transactions.