Securities Regulation Daily Wrap Up, STRATEGIC PERSPECTIVES—BakerHostetler paper examines ICO risks following the SEC’s investigative report on The DAO, (Dec 27, 2017)

Authors Marc D. Powers, Jonathan A. Forman, and Marco Molina of Baker & Hostetler LLP explain the SEC’s report of investigation on The DAO, a Decentralized Autonomous Organization that sought to raise funds for projects via an initial coin offering. The SEC determined in the report that tokens offered by The DAO were securities, although the agency chose to use the report to send a message to the ICO market rather than bring an enforcement action against The DAO. Still, the report of investigation left some questions unanswered. The authors mull the ongoing risks posed by the SEC’s report on The DAO to the ICO market both in terms of SEC enforcement activity regarding ICOs and the report’s potential impact on private law suits brought on behalf of ICO investor by what the authors view as an increasingly energized plaintiffs’ bar.

To view the full paper, please click here.

Attorneys: Marc D. Powers, Jonathan A. Forman, and Marco Molina (Baker & Hostetler LLP).

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