Source: https://ja.scribd.com/document/354711758/SEC-Report
Timestamp: 2019-04-21 18:01:58+00:00

Document:
trading in the DAO Tokens.
their obligations under the Investment Company Act.
securities exchange or operate pursuant to an exemption from such registration.
involving emerging technologies and new investor interfaces.
equal access to the information contained herein.
arbitrations and enforcement costs, and other transaction costs.
See Nick Szabo, Smart Contracts, 1994, http://www.virtualschool.edu/mon/Economics/SmartContracts.html.
ETH raised by The DAO was valued in U.S. Dollars (USD) at approximately $150 million.
status (i.e., when tendered to a creditor, is a valid and legal offer of payment) in any jurisdiction.
runs smart contracts on a blockchain known as the Ethereum Blockchain.
have said that [DAO Entities] must be owned or operate[d] by humans or human created entities.
conclusions. Anyone who uses DAO [Entity] code will do so at their own risk.
for Investors, SEC (May 10, 2017), https://www.sec.gov/oiea/investor-alerts-bulletins/ib_crowdfunding-.html.
See Jentzsch, supra note 8.
that DAO Token holders could use or charge others for using.
To promote The DAO, Slock.its co-founders launched a website (The DAO Website).
5,000 invited team members could discuss and exchange ideas about The DAO in real time.
anyone to re-use, it is our way to say thank you to the community.
DAO Framework, Inc., Whitepaper, GITHUB, https://github.com/slockit/DAO.
The DAO Website was available at https://daohub.org.
rewards to fund new projects or to distribute the ETH to DAO Token holders.
sale, the number of purchasers of DAO Tokens, or the level of sophistication of such purchasers.
DAO [Entity]s [ETH], a Contractor first must submit a proposal to the DAO Entity.
customers may exchange virtual currencies for other virtual currencies or fiat currencies.
create a proposal to send all of the DAO Entitys funds to himself or herself.
Sharing Network was publicly-available online during the Offering Period.
by-step tutorial describing how to vote on proposals.
avoid these restrictions; any DAO Tokens not submitted for a vote could be withdrawn or transferred at any time.
The DAOs Curator Multisig (or private key). These individuals all appear to live outside of the United States.
DAO Token holders voted for the proposal.
proposals, and could impose subjective criteria for whether the proposal should be whitelisted.
proposal had reached the required quorum for 52 weeks.
these orders based on pre-programmed order interaction protocols established by the Platform.
more than 700 of its U.S. customers.
See TheDAO Proposal_ID 5, ETHERSCAN, https://etherscan.io/token/thedao-proposal/5.
version of the blockchain, which is now known as Ethereum Classic.
application of existing U.S. federal securities laws to this new paradigm.
necessary to enable prospective purchasers to make an informed investment decision.
. SEC v. Cavanagh, 1 F. Supp. 2d 337, 360 (S.D.N.Y. 1998), affd, 155 F.3d 129 (2d Cir.
protecting public investors. SEC v. Aaron, 605 F.2d 612, 618 (2d Cir. 1979) (citing SEC v.
Ralston Purina Co., 346 U.S. 119, 124 (1953)), vacated on other grounds, 446 U.S. 680 (1980).
prohibition against offers to sell, or offers to buy, unless a registration statement has been filed.
require scienter. SEC v. Universal Major Indus. Corp., 546 F.2d 1044, 1047 (2d Cir. 1976).
derived from the entrepreneurial or managerial efforts of others. See SEC v. Edwards, 540 U.S.
expectation of profits to be derived from the entrepreneurial or managerial efforts of others.).
appended thereto. United Housing Found., 421 U.S. at 849.
take the form of goods and services, or some other exchange of value.) (citations omitted).
other periodic payments, or the increased value of the investment. Edwards, 540 U.S. at 394.
investment of ETH in The DAO.
The DAO and put forth project proposals that could generate profits for The DAOs investors.
significant managerial efforts required to make The DAO a success.
debating period required for other proposals.
ability to communicate with one another.
time they purchased their interests.).
would use virtual organizations should consider their obligations under the Advisers Act.
(finding geographic dispersion of investors weighing against investor control).
be found to exist . [The] emphasis must be placed on economic reality.) (citing SEC v.
Koscot Interplanetary, Inc., 497 F.2d 473, 483 n. 14 (5th Cir. 1974)).
efforts provided by Slock.it and its co-founders, and The DAOs Curators, as described above.
meaningful partnership or venture powers.
which the partnership is formed, he will be considered an issuer .).
needed information material to their investment decision. Id. at 643-44.
Cir. 1972); Pennaluna & Co. v. SEC, 410 F.2d 861, 864 n.1, 868 (9th Cir. 1969)); SEC v.
Section 6 of the Exchange Act, or is exempted from such registration. See 15 U.S.C. 78e.
exchange as that term is generally understood . 15 U.S.C. 78c(a)(1).
would not be subject to the registration requirement of Section 5 of the Exchange Act.
buy and sell DAO Tokens for execution based on non-discretionary methods.
1998) (Regulation of Exchanges and Alternative Trading Systems) (Regulation ATS), 70852.
Exchange Act. 15 U.S.C. 78f.
trading on such [ATS]; or (ii) [d]iscipline subscribers other than by exclusion from trading.
Regulation ATS, supra note 40, Rule 300(a).
Regulation ATS pursuant to Rule 301(a) of Regulation ATS. See 17 C.F.R. 240.3a1-1(a)(1) and (3).
exchange or operate pursuant to an exemption from such registration.
Regulation ATS adopting release here.

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