The SEC’s guidance indicating that securities laws apply to the activities of The DAO was not surprising according to Daniel R. Kahan.
“In our view, [The DAO] token is really a perfect example of something that should have been treated as a security from the beginning,” he said in the Legaltech News article “SEC Token Sale Guidance Suggests Cryptocurrency May No Longer ‘Get Such Lenient Treatment.’”
While the guidance sets the precedent for future transactions, uncertainty still remains over how it will affect ongoing or completed ICOs.
“We don’t know for sure whether [the SEC] may or may not go against people that have already conducted these token offerings,” said partner Alfredo B.D. Silva. “But [the SEC is] definitely signaling that going forward, they are paying attention to this, and that future offerings may not get such lenient treatment.”