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Comment by aey | Hacker News Reader

Offering is any time the token is issued, like on launch. The word is misleading since TG is not doing another sale. They actually complied with SEC during the sale. This is the launch which requires the tokens to be liquid for the network to function. My guess is that TG will file for a reg-a like blockstack.

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> Offering is any time the token is issued, like on launch.

The Securities Act defines “offer” to include any attempt to dispose of a security for value.

In order for anyone - Telegram or Joe Schmoe Gram investor - to “offer” a security it needs to be either (1) registered or (2) exempt from registration. Since Telegram filed Form D and the SEC has brought charges alleging an unregistered offering it would seem the SEC does not agree that the ICO was exempt and so Telegram was not in compliance with federal securities laws.

But even if the ICO were by some miracle exempt, without a registration statement the securities can’t be offered for sale to the public - regardless of whether they were new issues directly from Telegram or existing securities being offered for sale in Telegram’s new marketplace by Telegram users.

Not being a crytocurrencer or securities analyst I am still confused by this distinction. What you're saying makes it sound like this isn't that big of a story—they just need to file some paperwork and then the thing will go ahead as planned. Is that right?

The legislation on the registration of securities clearly didn't anticipate cryptocurrencies so it's a bit of a legal gray area – the laws routinely discuss which states a broker is registered on, or has clients, or advertises the security, to name just a few examples of how crypto break expectations

So IMHO this is somewhat of a big story in the sense that these events continue to push the discussion forward

If you think filing for an IPO is just some paperwork, then yea :)

That doesn't help me understand what's going on here. Is this a big deal or just a formality?

It’s a big deal. A lot of projects followed a similar path so we will have to wait and see what objection the SEC had with telegrams specific offering. A reg-a/s-1 would likely take them a year if they started it today.

Ah ok. Thanks! In that case the title seems good.

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