What Is a 'No-Action Letter' and How Can It Benefit a Reverse ICO Issuer? ▴ Learn

What Is a ‘No-Action Letter’ and How Can It Benefit a Reverse ICO Issuer?

A no-action letter is a formal communication from a regulator (like the SEC) stating that, based on the facts presented, the regulator will not recommend enforcement action against the issuer for proceeding with a specific token sale. It is not a legal approval, but it provides a significant degree of regulatory comfort.

For a reverse ICO, it acts as a strong signal to investors and the market that the regulator has reviewed the structure and does not currently deem it an unregistered security.

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