IANAL, but I interpret it to mean that both buyers and sellers are responsible for understanding what they're transacting, which are likely securities.
Unlicensed securities that are not exempt from the law are illegal to buy or sell.
The implications seem clear to me. Again, IANAL, but a lot of people seem to be commiting felonies, even if they don't know it yet. These ICOs can ruin the lives of more than just the owners.
They've been warned, but what does that even mean?