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

Requirements for Raising Money through an Initial Coin Offering (ICO) in Minnesota

Before raising money through an ICO in Minnesota, it is important to ensure that you comply with the state and federal securities laws. Failure to comply with these laws can result in severe penalties and legal consequences.

In Minnesota, the securities laws are enforced by the Minnesota Department of Commerce, Securities Division. The Securities Division requires that all securities offerings, including ICOs, be registered or exempt from registration.

To determine whether your ICO is exempt from registration, you should consult with a securities attorney. Some common exemptions include:

• Regulation D: This exemption allows for the sale of securities to accredited investors and a limited number of non-accredited investors.
• Regulation A: This exemption allows for the sale of securities to both accredited and non-accredited investors, but requires a registration statement to be filed with the Securities and Exchange Commission (SEC).
• Intrastate Offering: This exemption allows for the sale of securities to residents of a single state, provided that certain conditions are met.

It is important to note that the exemptions available for ICOs are still evolving, and the regulatory landscape is constantly changing. Therefore, it is crucial to stay up-to-date on the latest developments and consult with a securities attorney before proceeding with an ICO.

Jurisdiction

Minnesota

• General