Our colleague Kristen Howell has published an alert reporting on an important development in the cryptocurrency industry. The U.S. Securities and Exchange Commission has declared that Bitcoin, Ethereum and other coins operating on truly decentralized platforms are not securities. The agency’s reasoning was revealed in remarks by William Hinman, Director of the SEC’s Division of
U.S. Securities & Exchange Commission (SEC)
Join Us April 12 for the ABA CLE Program “Finder’s Fees: Statutory Challenges for Startups”
For early-stage companies in need of capital, finding potential investors can be difficult and time-consuming, especially when conditions in the capital markets are tight. For many companies, using a “finder,” an individual or entity that identifies, introduces and negotiates with potential investors, to help locate potential investors may seem to be a promising solution to…
Despite Legal Uncertainties, Initial Coin Offerings (ICOs) Attract Startup Attention
Over $1.5 billion has been raised by token offerings – also known as initial coin offerings or ICOs – so far in 2017. Not surprisingly, many startups are eager to capitalize on this possible funding source.
Although ICOs can be a useful method of raising capital, a number of legal issues must be considered in…
SEC Releases New Compliance and Disclosure Interpretations on Regulation Crowdfunding
On April 5, the Division of Corporate Finance of the Securities and Exchange Commission released two new compliance and disclosure interpretations (“C&DIs”) regarding Regulation Crowdfunding. Regulation Crowdfunding was adopted in 2015 in order to implement the provisions of Title III of the Jumpstart Our Business Startups (JOBS) Act of 2012 that exempt certain crowdfunding transactions…
Montana and Massachusetts Challenge the SEC on Reg A+
Two states have brought legal action against the U.S. Securities and Exchange Commission (SEC) for exceeding the authority granted to it under the Jumpstart Our Business Startups (JOBS) Act. Massachusetts and Montana, which initiated the lawsuit at the behest of the North American Securities Administrators Association, believe that the SEC exceeded its authority in issuing…
Something Old, Something New: SEC Says “I Do” to Online Private Placements
The SEC recently gave its blessing to a marriage of old and new: traditional private placements conducted via the Internet. In doing so it lifted the veil on how VC firms can create “pre-existing, substantive relationships” with initially anonymous web-based investors.

Something Old: …
New Regulations Loosen Restrictions on Smaller Investors
JR Lanis writes:
The Securities and Exchange Commission has issued new rules, termed Regulation A+, which were promulgated under Section 401 of the 2012 Jumpstart Our Business Startups Act, also known as the JOBS Act, which expand upon the previous Regulation A. The new rules ease securities laws to allow smaller and independent investors to…
SEC Updates Definitions of “Spouse” and “Marriage” to Include Same-Sex Partners
JR Lanis writes:
The Securities and Exchange Commission has announced new Lesbian, Gay, Bisexual, and Transgender (LGBT) inclusive interpretations of the terms “spouse” and “marriage.” This update brings SEC regulations into compliance with the Supreme Court’s decision in United States v. Windsor, which struck down the Defense of Marriage Act’s exclusion of lawfully wedded…
Cheers for Tiers – SEC Provides Regulation A+ Equity Crowdfunding Clarity

At an open meeting on March 25, 2015, the SEC adopted final rules to facilitate smaller companies’ access to capital via update and expansion of Regulation A, summarized in this press release.
A Two-Tier Approach
One core feature of the new rules is the…