Helping Clients Through Every Stage of an ICO
Understanding the importance of planning in the successful development of a virtual token, we work closely with developers to navigate the complex array of laws that apply to tokens from the earliest planning stages to launch.
Among other services, we help our clients by:
- Conducting a comprehensive token analysis to determine whether the token is a security under state or federal law;
- If necessary, structuring the ICO to qualify for an exemption from registration as a security using Regulation D, Regulation S, or Regulation A+;
- Reviewing the token’s white paper, website, and other marketing materials for compliance with state and federal consumer-protection and securities laws;
- Drafting clear, comprehensive private placement memoranda, investment agreements, and related documents so that developers and purchasers all understand the terms of the ICO;
- Carefully analyzing smart contracts to ensure that they accurately and unambiguously implement the required terms;
- Developing Anti-Money Laundering and Know Your Customer policies and helping clients implement them to verify investors’ identities and eligibility to participate in the ICO; and
- Providing post-ICO legal support, including by advising our clients on subsequent usage of security tokens and the applicability of money-transmitter or other laws.
Providing Confidence Despite Legal Uncertainties
Although state and federal regulators have finally begun to explain their views on cryptocurrencies and other virtual tokens, the law remains unclear in important respects. We are sensitive to those ambiguities in the law and work diligently to:
- Maintain a detailed and current understanding of applicable state and federal laws and a familiarity with proposed changes;
- Help our clients thoroughly understand what the law requires of them, as well as the risks resulting from legal uncertainty; and
- Design innovative, robust strategies that can succeed in an environment where the law is not always clear, and that can respond effectively to changes in the law.
