🏦 [Analysis] For Token Projects, Cooperation with the SEC is Key - Andrea Cataneo and Winnie Weil

As government regulators continue to take action against a plethora of crypto entities that launched tokens in 2016 and 2017, tokenizers should take note that cooperation with these agencies is probably the best strategy. Attorneys Andrea Cataneo and Winnie Weil use the token offered by Gladius as an example. Unlike a number of other unregistered ICO enforcement actions, the SEC imposed no penalties because Gladius self-reported its conduct, agreed to compensate investors and agreed to register the tokens as a class of securities. In other cases where proactive measures or cooperation with regulators were absent (e.g. AriseCoin), the SEC enforced much harsher penalties. Cataneo and Weil's analysis concludes that companies which have successfully conducted an token offering in the past would be wise to proactively correct any regulatory missteps, including the failure to register, make proper disclosures or any other litany of violations.