America is one of the countries where organizers of tokens and ICO would like to conduct cryptocurrency business, because there are a lot of potential investors in the States and generally positive prospects for this direction. However, US residents and citizens are limited in their purchases of tokens. What is the reason?

Let’s start with the fact that companies in the US which produce tokens and conduct ICOs are forced to use one more company in jurisdictions where such practice is approved, or questions about the subject at the time of license are not fully settled. It is neccessary to search for workarounds due to the fact that the legislation in the field of stock market and securities in the United States have imposed restrictions for participation in tokensale.

Last summer SEC announced: it is possible to recognize tokens as securities but only in case of execution of some conditions. For example, you it necessary to provide not only a profit perspective but also the right to vote with a stake in the company. In order to evaluate tokens and their share in comparison with securities some tests are used: Howey Test, Capital Risk Test, the Family Resemblance Test, and others. SEC has also developed documents for warnings to future investors about the risks and financial losses that they may incur in case of participation in ICO.

Restrictions and rules introduced apply to various ICO-projects existing around the world, so that companies from the US have no choice but to choose other jurisdictions. It means that it is too early to talk about the development of ICO in the country. Probably the company, having a head office in the United States, will continue the production of tokens, but with the support of more loyal jurisdictions.