Securities Law & Crypto

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Katherine Wu - October 11, 2018

ALL of the securities law fun

There’s been a ton of online discussion recently (mostly criticisms) of “accredited investor” rules in private fundraising, specifically as it pertains to investing in new crypto projects.

The common threads? It’s immoral to restrict adults from engaging in commerce on the grounds that they aren’t “qualified” to do their own homework. It further enriches the wealthy at the expense of the little guy. It’s difficult / expensive to police. Etc.

(We’ve even seen people bragging about how easy it is to forge docs on various KYC platforms to “get around” requirements...for the love of god, guys, don’t brag about that on twitter.)

This post isn’t about a self-righteous stance, but rather, a bit of nuanced context around how the private fundraising marketplaces actually work for the uninitiated. What are the actual requirements under accredited investor laws, and how could the crypto crowdfunding trend frame some of the rethinking around those requirements?