First Bitcoin Capital Corp (BITCF)

[BlockChains]

That's a good point. Seems likely that the well informed person at or for the SEC that wrote their excellent report on The DAO is not the same persons that probably assumed BITCF's ICOs were securities and pulled the trigger to suspend.

The reason that the ICOs are not securities is very easy to understand. They do not represent ownership in any for profit business nor do they offer any dividends or earnings, they are fiat cryptocurrencies.

Your comment that cryptos are just paper assets applies more to dollar bills which are nothing more than pieces of paper that only have a value based on perception.

Bitcoin is proportionally more valuable than USD because it is technically advanced beyond dollars even in USD's electronic form. That could change as soon as the Feds move dollars to a blockchain but they will be ever inflating the dollar unlike BTC which is non inflationary once it reaches 21 million coins.

While BITCF in its crypto from is clearly a security, BITCF has made no public offerings of its crypto shares since allowing mining is not an ICO nor a public offering, something completely new and unforeseen by regulators.

It's not hard to foresee new regulations to deal with this coming down within several years but those that allowed mining of shares before new laws take effect should be grandfathered.

Crypto tokens that do not represent ownership in an enterprise nor promise returns on investment are commodities according to the CFTC so they will likely never be regulated by the SEC.