According to PANews, Miles Jennings, the chief legal advisor of a16z Crypto, has proposed five fundamental principles in his article about token issuance strategy. These principles aim to assist blockchain projects in safely issuing tokens within the framework of U.S. securities law.
The primary rule is to never publicly sell tokens for fundraising purposes in the United States due to the strict regulatory stance of the U.S. Securities and Exchange Commission (SEC). The second rule emphasizes decentralization as the core guiding principle for the project.
The third rule points out that communication is key, and projects should strictly manage their communication strategies. The fourth rule advises projects to be extra cautious when considering listing on secondary markets and liquidity issues.
The final rule suggests that all tokens should have a lock-in period of at least one year. Jennings stresses that these rules are not intended to evade U.S. securities law, but to ensure that the risks associated with holding tokens are significantly different from the risks of investing in securities.