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

Based on the documents provided, it is important to note that initial coin offerings (ICOs) are subject to securities laws and regulations. The Securities and Exchange Commission (SEC) has taken enforcement actions against companies and individuals who have conducted fraudulent ICOs ^[1][3].

To determine whether an ICO complies with securities laws in Texas, it is necessary to consult with a qualified securities attorney who is familiar with the relevant state and federal laws and regulations.

However, in general, an ICO may be considered a security if it meets the definition of an investment contract under the Howey test, which includes an investment of money in a common enterprise with the expectation of profits solely from the efforts of others ^[2].

If an ICO is considered a security, it must be registered with the SEC or qualify for an exemption from registration. Texas also has its own securities laws and regulations that must be followed ^[4].

Therefore, it is important to consult with a qualified securities attorney to ensure compliance with all applicable laws and regulations when considering an ICO in Texas.

In summary, raising money through an ICO without violating securities laws in Texas requires compliance with both federal and state securities laws and regulations. It is important to consult with a qualified securities attorney to ensure compliance.

Source(s):

• [1] Crypto Assets and Cyber Enforcement Actions - SEC.gov
• [2] Securities Regulation and Initial Coin Offerings: A Legal Primer
• [3] Cryptocurrency/ICOs - SEC.gov
• [4] $4 Billion Crypto-Promoter Ordered to Halt Fraudulent Sales | Texas …

Jurisdiction

Texas

• General