Coincenter’s thoughts on how to clarify security treatment of tokens, including some bright line suggestions.
This approach would treat most token pre-sales as securities, as well as token-selling activities where actual promises of profits, revenue-sharing, or dividends are being made. Thus it would address the most clear examples of investor risk from which the most egregious examples of retail investor harm have emerged. It would not treat running network tokens as securities unless a third party was making actual promises of profits upon which investors were relying. Thus it would make clear that these functioning tokens are not securities irrespective of whether they were originally sold in a pre-sale agreement that qualified as a security.