Today SEC finally issued a ruling, concluding that blockchain tokens sold through token sales are securities. Everyone knew this day would come, now we are about to witness the consequences. I believe this ruling will trigger a cascading effect on all Initial Coin Offerings (ICOs) and token sales.
Trigger for the SEC’s investigation was last May’s infamous fundraise by “The DAO” The DAO raised a record ICO at the time only to lose a third of the funds through a hack. The precedent led to a split of the blockchain community, after a faction of the Ethereum community decided to roll back transactions related to the DAO fundraise. The DAO has since been delisted from trading.
SEC investigators ruled that tokens sold by The DAO were securities and as such subject to federal securities regulations.