Not only can DAOs be sued by state and federal regulators, but – at least according to the CFTC – holders of governance tokens who participate in DAO governance can be held personally liable if the DAO violates any laws or regulations.
Being able to programmatically collect royalties is one of the unique selling points of NFTs. But if you redistribute those royalties via a pooled or similar arrangement to other token holders you might be violating U.S. securities law. Here’s why…
In an effort to encourage collectors to mint in-game NFTs, several Metaverse projects I’ve seen offer a chance to win prizes ranging from cryptocurrency to new cars. Unfortunately, projects offering these incentives are probably breaking the law. Here’s why…