Why can’t Americans participate in ICOs?

The US Securities and Exchange Commission recently ruled that ICOs, but not crowdselling, will be treated as the sale of a security. This basically means that all ICOs must be registered like IPOs and offered only to accredited investors . … The difference between an ICO and crowdselling comes down to is the Howey test.

Persons located in or residents of the United States, North Korea, Iran, Venezuela or any other jurisdiction in which it is prohibited from using the Service (the ”Prohibited Jurisdictions”) are not permitted to make use of the Service.

Why ICOs ban US citizens? Banning of US citizens from participating in ICOs has to do with outdated financial and investment policies of US authorities . At the core of this ban is the official designation granted by US to ICOs and tokens offered at these offerings.