Securities Versus Utility Tokens
Wulf A. Kaal · 2022
The nomenclature for the term “securities token” is unclear and the term securities token has not been defined. The lack of a clearly delineated nomenclature resulted in various uses and interpretations of the term securities token, especially vis-à-vis the term “utility token.” This article helps clarify the nomenclature by first defining the general characteristics of securities tokens and the general characteristics of utility tokens. Thereafter, the article delineates key distinctions between the two categories. Key Words: Securities Token, Utility Token, Blockchain, Startup, Decentralized Commerce, Emerging Technology, Equity, Distributed Ledger Technology, Blockchain Technology JEL Categories: K20, K23, K32, L43, L5, O31, O3 * Professor of Law, University of St. Thomas School of Law (Minneapolis, USA). The author is grateful to Josh Bykowski for excellent research assistance. 0 Electronic copy available at: https://ssrn.com/abstract=4021599
Cite: Wulf A. Kaal, Securities Versus Utility Tokens (2022). SSRN: https://ssrn.com/abstract=4021599
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