How Can State Virtual Currency Laws Impact Initial Coin Offerings?
July 25, 2019
In this segment, Vincent Russo, Partner, Robbins Ross Alloy Belinfante Littlefield LLC, discusses how token issuers can use state legislation to complete an Initial Coin Offering (ICO) and how that might impact federal securities regulations.
I see at some point the SEC or Congress will control or pass their laws. I'll do what needs to be done to allow an ICO to work through the regulatory process and get approval. But in the meantime, these companies can use state law. My understanding from speaking with the state of Georgia is that there's a company last year that used states to invest in Georgia’s exemption to do an interstate ICO, a company called Graham Marie Media. And so it is possible states have just to be able to be prepared to move quickly to address any unforeseen issues that come up. Because you want to avoid the negative media around that, which could happen, of course. But you also want to create an environment that allows your business and residents to thrive. So I have no doubt that there will be states that will be on the forefront and ultimately benefit by bringing in good companies that would have otherwise been in another state.