BLOCKCHAIN, CRYPTOCURRENCY, ANDTOKEN MARKETING AND SALES ISSUES

This article discusses blockchain, cryptocurrency, token sales, and their associated legal issues. Blockchain and cryptocurrency and their characteristics are described, followed by the arguments for and against them. The article expounds on the federal regulations affecting blockchain and cryptocurrency, itemizing the federal agencies involved. Some of the recent significant blockchain and cryptocurrency legal cases are highlighted. The essay describes consumer finance and portrays token sales and the security regulations that govern them. The article illuminates the blockchain and cryptocurrency legal principles by reviewing the celebrity liability actions surrounding Larry David, Tom Brady, and Gisele Bündchen, a world-famous comedian, National Football League quarterback, and world-class model respectfully. The article concludes that there are a plethora of issues that a firm faces in deciding whether to offer a token sale. The critical issue is whether the SEC will decide that a token is a security token subject to government oversight, rather than a utility token where no regulation is required. For a token sale to be successful and to minimize government interference, one must carefully review a token’s features from the viewpoint of the tokenoriginating organization and a regulator’s position.