U.S. Securities and Exchange Commission declared most Initial Coin Offerings (ICOs) as securities, issues subpoenas to dozens of companies in ICO crackdown

Briefing

U.S. Securities and Exchange Commission declared most Initial Coin Offerings (ICOs) as securities, issues subpoenas to dozens of companies in ICO crackdown

February 12, 2018

Briefing
  • ICOs as Securities – U.S. Securities and Exchange Commission chairman Jay Clayton declared most Initial Coin Offerings (ICOs) as securities, defined as cryptoassets that increase in value over time depending on performance of company
  • Law Governing Securities – ICOs deemed as securities require protections to be in place for investors, traders to pass thorough examination, and companies and advisors have knowledge how to conduct securities events properly
  • True Cryptocurrencies (Not Classified as Securities) – Defined as public blockchain networks with native cryptocurrencies either mined or produced by public
  • Patchwork of Regulations – Currently cryptocurrencies are regulated differently per state, as well as for small and large scale companies
  • ICO Crackdown – SEC issued dozens of subpoenas and information requests from companies planning ICOs

Accelerator
Web3 Ecosystems, Tokens and Consensus Mechanisms

Market Disruption
Crowd-Based Financing, Innovation, Competitiveness and Trade

Sector
Financial Services

Organization
U.S. Securities and Exchange Commission

Source

Original Publication Date
February 9, 2018

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