
Ask HN: Is this illegal? ICO question - asia92
Creating an ICO that uses the generated proceeds to invest in US equities and distributing the dividends to coin holders. Sounds like a good idea but could get into trouble with the SEC?
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greenyoda
If you're creating a vehicle that invests in equities and distributes
dividends (sounds like a mutual fund), you would need to register it with the
SEC and comply with all the laws and regulations that govern such investments
(e.g., reporting dividend payments and capital gains distributions to the IRS
on 1099 forms, etc.).

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lordCarbonFiber
You're using an ICO to try to get around the limitations the SEC has on
investing in US equities. IANAL, but Im going to go with YES that's illegal.
And, as a general rule to all looking to get rich quick with ICOs, hire a
lawyer.

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asia92
Well is it really trying to get around SEC limitations?

The only reason that I bring up ICO is because there is a massive amount of
wealth being hoarded in ETH that can be used to generate returns for the
owners.

