The SCE is actively clamping down on ICOs that can be construed as securities. By definition securities entitle investors to dividends and are subject to regulation. The problem is knowing which crypto currencies meet this criteria and will be subject to scrutiny in the future.
Unless you’re legally savy and can apply the Howey Test with certainty, you may find yourself owning some securities. The best way to avoid legal entanglements is to own utility coins. Those that grant access to a company’s product or service. Below is a quick list of some of the best utility coins in the market:
#1. Ripple: the XRP token will be used as a medium of value held in escrow during international bank transactions.
#2. Litecoin: used as unit of value, and currently the token of choice for fast transactions.
#3. Gas: used to pay as fee for transactions on the Neo platform.
#4. XLM: future utility token for IBM’s Hyperledger and Maersk’s global trading network.
#5. Cardano: the ADA token is necessary as settlement to use their universal blockchain. Also, its atomic swaps capabilities makes it compatible and exchangeable with other currencies.
#6. VEN: needed to produce Thor, the token used for the VeChain blockchain. However, since VEN is not used, it can be perceived a form of value.
#7. Lisk: the LSK token functions as a method of payment within the platform. Similar to Gas.
#8. STEEM: the token is used as reward for content on the Steemit website.
#9. Mediblock: MED tokens are used as payment within the participants of the MED blockchain medical network.
#10. Power Ledger: POWR tokens aid in the interoperabilty and currency exchange of the company. It works in conjunction with the Sparkz token that powers the network.
There are many other more prominent coins that can be classified as utility such as Nano, EOS, Neo, Ethos, XEM, etc. But their high store of value and dual purpose as a crypto currency makes them possible securities.
Despite the uncertainty of regulation, the coins listed above are pegged to the company’s performance. Thus, they offer a secure investment in the future.