Actually they are unregistered, that is where the SEC would have the issue.
It depends upon the distribution. If the tokens are sold, then yes, in the eyes of Gensler that is a security. However, it is only the selling. So distribution as rewards is a completely different matter.
Or be outside the United States then you dont have to deal with Gensler.
Agreed.
But I have not seen a layer 2 token that was distributed that has not had any sell activity.
but i get your point.
You can be outside the United States but if any US citizen has access the SEC will come for you.
Which is why a lot of projects do not let US citizens get involved.
It is best to just not have layer 2 tokens in your games. There is no real reason for them from a game play stand point. When you can have an in-game currency that doesn't trigger any of this.
Not a single game designer or web2 company I have spoken to disagrees but if someone has a legit reason. I am open ears.
True. Even EOS didnt allow US citizens to buy during their ICO.