Federal regulations

In this section, we will cover some important federal regulations in the blockchain space.

Section 5 of the Securities Act of 1933

The federal securities law governing the offer and sale of a security is covered under the Securities Act of 1933, (the Securities Act). The purpose of the Securities Act is to protect the general public from making investments in fraudulent schemes. The Securities Act requires the disclosure of information that will be significant for the investors to make investment decisions. This is the main reason that the SEC requires issuers that offer and sell securities in the US to file registrations of such offerings.

Under Section 5 of the Securities Act, generally, an offer or sale...