A security token offering (STO) is an innovative method of raising capital and offering fractionalized ownership in a business, an asset or debt. By offering a token, issuers and investors experience frictionless administration of the interest, exposure to global liquidity, and assurance in transfers stemming from baked-in compliance.
BBL's attorneys leverage a deep understanding of blockchain and securities laws to guide clients through the entire process of conducting an STO. Over the years, we have built a professional network of industry-leading issuance platforms, marketing partners, and broker-dealers who work together to ensure the success of a token sale.
We have worked with clients to tokenize over $6 million of commercial real estate, company equity, and revenue producing assets.
The applicability of U.S. securities laws to Initial Coin Offerings was at best uncertain from the time the first ICO launched to the SEC's release of The DAO Report and In re Munchee Inc. in late 2017. Indeed, the 2018 Annual Report of the SEC's Division of Enforcement made clear it will continue to focus on issues related to ICOs and digital assets.
Under U.S. securities laws, a person "effecting securities transactions" must register as a broker-dealer and comply with a host of related regulations. These requirements may apply to persons who participate in the issuance or transacting of securities in a variety of ways including finding investors and negotiating private investments.
BBL assesses the activities of clients to recommend cost-efficient methods of operating in compliance with Broker-Dealer regulations. If necessary, the firm will provide full support in obtaining registration and complying with reporting requirements for broker-dealers.
The SEC closely scrutinizes the conduct of private companies as well as emerging platforms that trade in private company securities and vows to bring enforcement cases as needed to protect investors. BBL guides clients developing alternative trading systems through the complex issues presented by applying conventional laws to novel technology.
By communicating with regulators and observing traditional compliance procedures, we offer efficient solutions so innovators can focus on what they do best.
A patchwork of state laws offers conflicting interpretations of how to apply money transmitter laws to virtual currency activities. Certain states choose not to require registration while others demand administrators and exchangers obtain money transmitter licenses. BBL advised clients on how to navigate the conflicting approaches taken by various states and comply with FinCEN regulations applied to virtual currency activities.