Can I raise money through an initial coin offering (ICO) without violating securities laws in New Jersey? What are the requirements?

To determine whether you can raise money through an initial coin offering (ICO) without violating securities laws in New Jersey, you should consult with a licensed attorney who specializes in securities law. However, in general, ICOs are considered securities offerings and are subject to federal and state securities laws.

According to the New Jersey Uniform Securities Law, any offer or sale of securities in New Jersey must be registered with the New Jersey Bureau of Securities or qualify for an exemption from registration ^[1.2]. There are several exemptions available, including the intrastate exemption, which allows for the sale of securities to New Jersey residents only ^[1.2].

Additionally, the New Jersey Bureau of Securities has issued guidance on ICOs, stating that ICOs may be subject to securities laws and that issuers should consult with legal counsel to determine whether their ICO is subject to registration or qualifies for an exemption ^[1.2].

Therefore, it is important to consult with a licensed attorney who specializes in securities law to determine whether your ICO is subject to registration or qualifies for an exemption in New Jersey.

Source(s):

• [1.2] Power to raise money by taxation

Jurisdiction

New Jersey

• General