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#SEC Rule 701

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Paying Employees and Advisors in Crypto Tokens: What Companies Need to Know
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Paying Employees and Advisors in Crypto Tokens: What Companies Need to Know

Key Highlights Token-based compensation must clearly define allocations, establish separate timelines for vesting versus delivery, and explicitly account for project delays or launch contingencies. Employers must adhere to federal wage mandates, worker classification rules, and securities exemptions such as SEC Rule 701 before granting token incentives to employees or advisors. Tax treatment hinges on IRS ...