Nature of Decentralised Autonomous Organisations (DAOs)
How are DAOs regulated if they generate a return on its assets?
"Another potential legal issue with DAOs is that once some property or assets are involved and there are potential or actual returns, the enterprise may become deemed to be a collective investment scheme under applicable investment regulations eg under the Securities and Futures Act in Singapore. The offer or trading of the digital tokens relating to the DAO may then become an offer of units in CIS which is unlawful unless the relevant requirements under the law have been met. In 2017, the US SEC famously declared that “the DAO”’s offer of tokens is an unauthorised offer of securities (under the US Howey test)."