In an opinion editorial for Kelman.Law, Michael Handelsman says token compensation agreements should define the award, the entity responsible for delivering it, and what happens if a launch is delayed or the working relationship ends. He says the terms should distinguish when tokens are earned, delivered and allowed to be transferred.
For U.S. employees, companies should not assume tokens satisfy wage-payment requirements; federal minimum-wage and overtime rules generally require cash or a negotiable instrument payable at par, subject to exceptions. Handelsman says securities offerings need a valid registration or exemption pathway where securities are involved, and that Rule 701 has limits and does not exempt certain resales. Tax treatment can also differ from contractual vesting, including when tokens cannot readily be sold.
