An Overview of the SEC's Position on Cryptocurrencies

The SEC have taken a "Maybe you are, maybe you aren't a security" approach to cryptocurrencies within their jurisdiction.

Primary sales - tokens sold during an ICO Secondary sales - tokens sold or exchanged after the ICO. The SEC will take enforcement action in both steps if necessary.

If you have conducted an ICO and no one from the SEC has come knocking yet, they will soon.

The SEC is designed to protect US citizens and under the current law, there is an ongoing obligation on those who issue tokens to register those as securities with the SEC. If you set rules during your ICO that U.S. citizens and residents should not obtain these tokens, you need to ensure that it stays out of the hands of U.S. citizens and residents permanently.

The SEC looks at these third parties closer than those undertaking ICOs because of the Series 6 and Series 7 regulations relating to the sale of securities to the general public within the United States of America.

The SEC is not trying to stifle innovation - the rules were crafted to protect investors within their jurisdiction.

The SEC is a civil regulatory enforcement agency which relates to financial securities within the United States.

Yes, there is a lot of noise about what the SEC is doing with respect to ICOs.

The SEC is working within a grey area of law because they are not the legislature.

Regardless of your opinion of the SEC, they are working with diligence within a complicated area of the law.