How do token sales fit with securities regulations?

The case for treating some crypto-tokens as securities—and some not.

There are many types of digital tokens, ranging from tightly controlled airline miles to open and decentralized systems like Bitcoin. In this video explainer, Coin Center Director of Research Peter Van Valkenburgh identifies the various properties of digital token , such as decentralization and utility, that one might consider when determining whether or not its distribution fits the definition of an investment contract. This is based on Coin Center’s Framework for Securities Regulation of Cryptocurrencies.

Based in Washington, D.C., Coin Center is the leading non-profit research and advocacy center focused on the public policy issues facing cryptocurrency and decentralized computing technologies like Bitcoin and Ethereum. Our mission is to build a better understanding of these technologies and to promote a regulatory climate that preserves the freedom to innovate using permissionless blockchain technologies.