advertisement

New ICO Announcements Overriding SEC Regulations

ICO | Latest ICO news | US SEC ICO | Sec ICO

More Than Twenty ICO’s Announced, Despite SEC’s Warning

Securities Exchange Commission made an announcement last week that some ICO i.e. Initial Coin Offering tokens can be given the status of being regarded as “Securities” once they start following federal securities laws. This will lead to startups catering to US markets to register themselves with SEC and follow its set of rules. However in spite of announcements made by SEC, several firms have been acting otherwise by carrying forward events of token distribution without abiding by the rules.

As per statistics derived from tokendata.io around 120 active or upcoming token distribution events to be organized in 2017 including those of Eros, Corion and Groceryx and 20 more have already been announced since the issuance of warnings by SEC. The effect of SEC warnings was supposed to bring order in the ICO sector but its actual effects are just the opposite.

SEC feels that most of the ICO’s does not fall under the purview of its regulatory framework. Several of such tokens also do not fill in the requisite requirements of being regarded as a security. Most of these virtual currency tokens cannot grant company equity. These also don’t fulfill all the necessary disclosure requirements. In stark contrast to security which helps in building ownership in a particular company, the tokens use cases for bootstrapping a project.

Also Read: Protect your investors funds. says SEC to ICO issuers.

Security refers to a negotiable and fungible financial instrument having a specific monetary value. It culminates to ownership rights via stock in publicly traded company or having a creditor relationship with corporation or government body or ownership rights in the form of option. Thus only a very ICO’s will make it to the security category with the above mentioned specifications to adhere to. However SEC will be in a place to take the ultimate call regarding setting of criteria.

It is advisable for new startups to consult SEC to determine whether regulation is required for their digital assets. Whatever be the case, both blockchain network and ICO are here to stay.

KryptoMoney.com posts latest news and updates about Bitcoin, Cryptocurrencies, Blockchain Technology and upcoming ICO’s.

Get Latest Cryptocurrency And Bitcoin News

Signup this form below to get latest Cryptocurrency and Bitcoin news, directly in your mailbox

Note:

Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.