@austinsandersco thanks for the question. Seems like I spent quite a bit of time on everyone else's blog talking about it.

I can't say I'm surprised with the ruling. I can say I am disappointed they chose not to have the Crowdfunding exemption from the 2012 JOBS Act apply to ICOs . While the scope of that exemption is limited, it would have a least signaled the SEC sees the importance of this new method to raise capital and Congress needs to expand the limits on the exemption to make the US financial markets the defacto place for ICOs to happen.

Do I think this will kill ICOs? No.

There are about another 168 countries in the world with much more accommodating attitudes towards ICOs. The consequence of this SEC ruling will cause a mass exodus of technology and finance companies from the US in the coming years. When one looks at the future of technology, blockchains are the bleeding edge of that technology. Each blockchain application platform (Ethereum, LISK, Stratis, NEO) is basically a new internet ecosystem about to be filled with new web application technology and new user experiences. Tech developers will naturally move into this space, and I think that happens significantly when LISK releases it's SDK to the Javascript developers of the world. Startups will form and ICOs will provide them a new way to raise capital cheaply. What compelling reason exists to stay in the US if I cannot participate in ICOs and I have been cut off from the ability to fund my tech company with an ICO?

The finance industry will move away from the US as well. Consider what all the major banking and investment houses (JPMorgan, Goldman Sachs, etc.) have been communicating with the Ethereum Hyperledger project. The future of banking is blockchains. If they cannot reap fees from lucrative ICOs, such as Bancor, what compelling reason do they have to keep a majority of their operation here. Same holds true for Angel Investors and Tech Venture Capital firms.

Also, an overlooked aspect of this ruling is the US Income Tax ramifications . By ruling ICO tokens are some form of security or financial instrument, trading cryptos is now excluded from Section 1031 Like-Kind exchanges of property capital gains tax deferments. Rather than calculating tax only when the crypto is translated to fiat, now every crypto trade must be reported and capital gain tax remitted in the year the trade was executed, regardless if the trade was into fiat or crypto.

My feeling is the next move by the SEC (and quite possibly the IRS) will be against Poloniex. In fact, I think in many ways the ruling was forced because of the shady bullshit they have been pulling. On a couple of subreddits I did read of a number of people splitting the cost of legal representation to file complaints with the SEC about Poloniex.

Living during interesting times now in the crypto world.