SEC’s enforcement to legitimize ICOs and crypto-assets.
The U.S. regulatory body, Securities and Exchange Commission (SEC) has requested further comments regarding its decision on the listing and trading of a Bitcoin (BTC) exchange-traded fund (ETF), as per the official sources of SEC.
The SEC’s regulation facilitates capital formation, which assists entrepreneurs launch businesses and companies’ prosperity. Likewise, the Securities and Exchange Commission (SEC) cites that all Initial Coin Offerings (ICOs) should be regulated as securities but when asked if they will ban or regulate the market, an SEC commissioner made it clear he was not suggesting either option. Instead, the focus is on protecting investors from fraudulent investments.
SEC’s eagle eye on ICOs: The recent regulatory development is vital and it exhibits all digital assets through an initial coin offering that are still considered to be securities at this stage which implies companies need to abide by the federal securities laws. It is quite feasible that the latest exertion will force ICOs to avoid dealing with US investors altogether.
Over the last couple of months, SEC officials have been focusing on the ICOindustry meticulously that has brought several irregularities to light. An order against Crypto Asset Management LP was field earlier in September. The company has not been registered as an investment firm. Furthermore, there are concerns regarding violating federal securities laws by this specific entity.
This was followed by enforcement action against TokenLot. A collaboration with FINRA caused in shutting down the HempCoin offering. Series of indefinite aspects are lined up in case of initial coin offerings. The investment structure allows for some falsely advertised packages, as has become apparent in the case of HempCoin.
This year, bitcoin and other cryptocurrency price trend hasn’t been that desirable so far on the back of the news of US Securities and Exchange Commission’s (SEC) clampdown on ETF product approval decision. That is to say that there are expectations and the industry and users are waiting for the decisions that the regulator can make.
The possibilities are highly anticipated while the ecosystem of cryptocurrencies must generate confidence, so that it extends to all users, then new opportunities will come. It waits for new ads.
Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and / or services. This press release is for informational purposes information does not constitute investment advice or an offer to invest.