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Authors

Ethan D. Trotz

Document Type

Article

Media Type

Text

Abstract

Issuers of blockchain-based projects have increasingly turned to Initial Coin Offerings to raise capital. Many of these offerings have similar characteristics to securities offerings, yet are often not registered or exempt from securities laws. Initial Coin Offerings present numerous risks to investors, including fraud, inadequate disclosures, and a lack of remedies. The Securities & Exchange Commission must step in to protect investors and limit losses. One way to do so is through regulation. The Securities & Exchange Commission should use existing regulations for Initial Public Offerings and securities offerings as a guideline. However, blockchain-based offerings present unique issues never before observed in securities offerings. As a result, the Securities & Exchange Commission must adapt existing regulations and consider these unique issues when devising regulation. In doing so, the United States will position itself as a global leader in cryptocurrency regulation, providing safety to investors and clarity to issuers.

First Page

428

Last Page

455

Publication Date

7-1-2019

Department

Other

ISSN

0734-1490

Language

eng

Publisher

Northern Illinois University Law Review

Included in

Law Commons

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