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

Requirements for Raising Money through an ICO in Oklahoma

In Oklahoma, the Securities Act regulates the offer and sale of securities, including digital assets such as those offered through an initial coin offering (ICO). According to [5], an ICO is considered a securities offering and must comply with the registration requirements of the Securities Act.

To raise money through an ICO without violating securities laws in Oklahoma, the issuer must register the offering with the Oklahoma Securities Commission or qualify for an exemption from registration. The exemptions available for securities offerings in Oklahoma are listed in the Oklahoma Administrative Code, Title 660, Chapter 13, Section 13-13-101.

Some of the exemptions that may be available for ICOs include:

  • Exemption for offerings to accredited investors [5]
  • Exemption for offerings to no more than 10 non-accredited investors [5]
  • Exemption for offerings of securities with a minimum investment of $5,000 [5]

It is important to note that the exemptions have specific requirements that must be met, and failure to comply with these requirements may result in a violation of securities laws.

Additionally, issuers must provide investors with full and fair disclosure of all material information related to the offering, including the risks involved. This information must be provided in a prospectus or offering memorandum, which must be filed with the Oklahoma Securities Commission or provided to investors in accordance with the applicable exemption.

Conclusion

To raise money through an ICO in Oklahoma without violating securities laws, the issuer must comply with the registration requirements of the Securities Act or qualify for an exemption from registration. Issuers must also provide investors with full and fair disclosure of all material information related to the offering.

Source(s):
Jurisdiction

Oklahoma