I'd be curious to hear his reply to your question. I would also like to pose another question to the author...
First, I'll give some background info to help make sense of the question:
An ICO is created for Token X. The purpose of token X is to invest in other cryptocurrencies and make a profit over time. All investors are granted a certain level of voting power based on the # of Token X they hold.
Each time the portfolio wants to make an investment, a vote goes out to all investors. Not all investors are required to vote, it just requires a 51% vote to make an investment decision. 2 investors are the "unofficial" deciders of the portfolio (each holds enough token X to make up the 51%)...
Would this ICO follow the "SEC sniff test" you mentioned... Would this be considered a "non-security" because investors have the ability to vote on decisions (even though the 2 main investors hold so many shares that it is possible for them to gather 51% vote on their own)...
The reason I'm asking is because I've been investing in cryptos for the past year now. I've made some serious returns and I have family and friends that want to get in on it. I'm looking for a legally compliant way to create a portfolio for my family, friends, and myself to "pool" our money together for a larger cryptocurrency portfolio.
Thank you for your time and your article, very well written and researched.
Khaleel
RE: ICO Design and SEC rulings