Security Tokens and Stablecoins Quick Start Guide

coverpage

Title Page

Copyright and Credits

Security Tokens and Stablecoins Quick Start Guide

About Packt

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Contributors

About the authors

About the reviewers

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Preface

Who this book is for

What this book covers

To get the most out of this book

Download the example code files

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Conventions used

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Reviews

Introduction to Blockchain

A brief overview of the blockchain technology

Bitcoin

Ethereum

Evolution of blockchain

Bitcoin basics

The distributed ledger

The consensus mechanism

Keys and digital wallets

Ethereum basics

Ethereum cryptocurrency and tokens

Smart contract

Ethereum virtual machine

Ethereum gas

Account

Oracle

Off-the-chain data

PoS

Performance considerations

Miscellaneous comments

Summary

STO - Security Token Offering

A traditional fund raising roadmap for startups

Seed money

Angel investors and angel funds

VC fund

Private equity firms

Mezzanine capital/fund

IPO

Pros

Cons

The initial coin offering

Coins and tokens

Crowdfunding

ICO and its difference to IPO

The ICO bubble

The STO

Security

STO verses ICO

STO versus IPO

Challenges of STOs

Summary

Monetizing Digital Tokens Under US Security Laws

What is an STO?

Overview of US securities laws

Federal regulations

Section 5 of the Securities Act of 1933

Section 3(b)(1) and (2) / Regulation A/A+ offerings (Mini IPOs)

Exemptions to Section 5 of Securities Act of 1933

Section 4(a)(2) / Reg D – Rule 506(b) and (c) – private placement exemption

Section 3(b)(1)/ Rule 504 – small issuance

Limitation of Rule 504 and 506 – bad actor disqualifications

Section 4(a)(5) – accredited investor exemption

Section 4(a)(6) / Regulation Crowdfunding – crowdfunding exemption

Section 3(a)(11) / Rule 147 (added by JOBS Act 2012) – intrastate offering

Regulatory issues with respect to exemptions under the Securities Act

Other related regulatory regimes

Federal regulators

State regulations

Resale of securities Rule 144/144A/Section 4(a)(1½ ) / Section 4(a)(7)

Rule 144 exemption

Rule 144A exemption

Section 4(a)(1½) exemption

Section 4(a)(7) exemption

Securities laws development in blockchain and digital cryptocurrencies

SEC alerts

Report of Investigation Pursuant to Section 21(a) of the Exchange Act – The DAO (July 25 2017) (the DAO report) – the application of the Howey test

Legal analysis by the SEC

SEC's conclusion

Security trading

Real cases

Munchee Inc. (Munchee order December 11 2017)

Legal analysis by the SEC

AirFox case (November 2018)

Legal analysis by the SEC

The Paragon case (November 2018)

Legal analysis by the SEC

SEC versus PlexCorps et al.

Crypto Asset Management case (September 2018)

Legal analysis by the SEC