ICO is not illegal, it's just crowdfunding. If you do some projections about future profits this is illegal.
Actually when you do ICO you're selling a product - token in a value transfer system.
That is sort of what I originally thought, but then I realized I was wrong.
The Supreme Court has said it will look past all obfuscations to the economic reality of whether the n00b investors were basing their expectations of future profit on the future actions of the centralized party issuing the tokens and developing the enterprise which the investors are investing in.
Realize I am doing you a big favor. Cancel the ICO immediately and keep yourself out of trouble. Stay focused on being a developer and not involve yourself in this legal tarpit.
Where is the "value transfer system"? I see only tokens sold to speculators hoping to make a profit on the rise in exchange price on a few centralized exchanges populated only by speculators. Afaik, the Waves product isn't even ready to ship to actual users of a "value transfer system", how could it be a value transfer system.
The tokens were not distributed for use as a currency. There is no significant use of the tokens for exchanging value for any purpose other than speculation on the price of the tokens.
One way to make it even less dubious, is don't sell the tokens to the adopters of the "value transfer system" so that they don't need to be speculators to justify obtaining the tokens.