SEC Insists ICO’s Are Securities

C O N T E N T S:

KEY TOPICS

  • There has been a lot of confusion with regard to regulations on ICOs, and Jay Clayton, the chairman of Securities and Exchange Commission (SEC) went on CNBC to insist that the selling of security-like tokens in an ICO must obey the rule of law.(More...)

POSSIBLY USEFUL

  • Though the SEC is treading carefully on the cryptocurrency turf, it does not plan to ban the ICO method of fundraising, which was clarified by Robert Jackson, the Commissioner of SEC. The agency is wary of pump-and-dump schemes that are particularly common in ICOs, and declaring every ICO as a security would help dissuade bad actors from taking advantage of what still remains to be a largely unregulated system.(More...)

RANKED SELECTED SOURCES

SEC Insists ICO's Are Securities
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description: US: Inventor of Beats Headphones Applies to SEC for $300 mln ICO

KEY TOPICS

There has been a lot of confusion with regard to regulations on ICOs, and Jay Clayton, the chairman of Securities and Exchange Commission (SEC) went on CNBC to insist that the selling of security-like tokens in an ICO must obey the rule of law. [1] "The SEC is right to insist that the digital coins, such as bitcoin, which are replacement for sovereign currencies, such as the dollar, sterling, yen and euro, are not securities," he said. [2]

U.S. Securities and Exchange Commission (SEC) chairman Jay Clayton states that the SEC will not be bending the rules anytime soon when it comes to cryptocurrencies and that while bitcoin remains a commodity, all initial coin offering (ICO) tokens -- or coins offered through a fundraising process -- classify as securities. [2] Recently, a coalition of Silicon Valley crypto stakeholders led by Andreessen Horowitz has begun lobbying efforts in Washington to stop the SEC from classifying all ICO tokens as securities. [3] The fight has been ongoing since April of this year, when the Venture Capital Working Group -- an association of lawyers, traders and crypto enthusiasts alike -- gathered to meet with the SEC and assist regulators in viewing virtual currencies as "utility tokens" rather than securities. [2] "I believe the SEC is also right that tokens -- which did not name -- that act as digital assets are securities. [2] The SEC chief also said ICOs are most likely securities but refused to comment on the regulatory status of specific Altcoins. [3] In the eyes of the SEC, this would mean that a lot of ICOs would fall under the realm of securities. [1] While utilities are generally exempt from SEC rules, securities, on the other hand, often represent stakes in a company's offerings. [2] What he kept insisting though was that the SEC would not go against the tide and try changing the traditional definition of securities to suit the cryptocurrency debate. [1] In response to a member of the audience asking whether SEC plans to do anything about the cumbersome and very complex securities requirements, a somewhat dismissive Clayton said he will be short, adding "yes" in reply. [4] Do you agree with the SEC chairman's views? What Altcoins do you think are securities? Keep the conversation going in the comment section below. [3]

He said, "The SEC is right to insist that the digital coins, such as bitcoin, which are replacement for sovereign currencies, such as the dollar, sterling, yen and euro, are not securities. [5] BITCOIN has enjoyed a ringing endorsement from the SEC after the head of the Securities and Exchange Commission Chairman announced that cryptocurrencies are not a security and that Bitcoin could replace sovereign currencies such as the dollar, Euro or yen. [6] If the U.S. Security and Exchange Commission (SEC) classifies XRP as securities, it would have a deadly effect on the XRP price and may well discredit it among the members of the crypto community. [7]

He also made clear that the SEC is not changing its rules for initial coin offerings (ICO), underscoring that tokens or digital assets used in that fundraising process are securities. [8] Green said he believes the SEC is also right that the tokens - which he did not name that act as digital assets are securities. [8]

Use as protocol/mediums of exchange, and lack of corporate organization but if you think ICOs are anything but an end run around IPOs and the SEC will let that go you clearly have a fundamental lack of understanding of the difference between securities and commodities. [9] The Securities and Exchange Commission's (SEC) "steadfast yet proactive approach" on Bitcoin and other cryptocurrencies shows the sector is increasingly mainstream, affirms one Chief Executive Officer. [8] Just as the SEC doesn?t have the ability to regulate crappy cannabis stocks traded on the Toronto stock exchange, it doesn?t have the ability to regulate securities traded outside the U.S. or stop U.S. cannabis companies from moving to Canada. [9] The SEC isnt wrong in their view that ICO is a securities offering. [9] Utilities are mostly exempt from the rules of the SEC while securities represent stakes in the offerings of a company. [5] Some six months have passed since the United States Securities and Exchange Commission (SEC) launched a lawsuit against against alleged cryptocurrency scammers PlexCorps aka PlexCoin, Sidepay.ca, Dominic Lacroix and Sabrina Paradis-Royer over securities law violations. [10] The SEC has a history of prosecuting securities launched outside the U.S. as well. [9] Don't take my word for it, speak with a new securities lawyer and watch the video where the SEC chairman stresses the howey test will apply to all ICOs and token sales. [9]

The SEC is right to insist that the digital coins, such as Bitcoin, which are replacement for sovereign currencies, such as the dollar, sterling, yen and euro, are not securities." [8]

The Securities Exchange Commission (SEC) and CFTC are continuing to consider reviews to determine whether Ethereum is a security and if it needs to be subjected to U.S. federal regulations as any other type of security in the market. [11] The U.S. SEC is heavily scrutinizing which cryptos act as securities, and exchanges, and BitShares, along with popular exchange Coinbase, is working with the system. [12] Only four cryptos are listed on the exchange, specifically because Coinbase does everything within its power to avoid a kerfuffle with the SEC. So how can we interpret its newfound desire to become a securities broker-dealer? Simple: It knows something we don?t--namely, that the SEC probably won?t abandon its "tokens are securities" position. [13] When will the crypto industry get a definitive answer from the regulator on which assets are classified as securities? In keeping with the narrative from the SEC, Redfearn shied away from giving any exact timelines, instead stating that the commission will issue more statements on this topic moving forward. [14] Brett Redfearn, the Director of Division and Trading at the SEC, shared insights on the state of crypto industry regulation, ranging from the categorization of assets as commodities or securities, to whether current systems can support this rapidly-evolving industry. [14]

In this new advisory position, Szczepanik will coordinate efforts across all SEC Divisions and Offices regarding the application of USA securities laws to emerging digital asset technologies and innovations, including initial coin offerings (ICOs) and cryptocurrencies. [15] After months of back-and-forth, blockchain startups and regulators--like the U.S. Securities & Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)--appear to have arrived at a compromise over the role initial coin offerings (ICOs) and tokens. [13]

Simple: It knows something we don?t--namely, that the SEC probably won?t abandon its "tokens are securities" position. [13] On June 5, the USA Securities and Exchange Commission (SEC) announced that Valerie A. Szczepanik was named associate director of the Division of Corporation Finance and senior advisor for Digital Assets and Innovation for division director Bill Hinman. [15] While the SEC continues to use the Howey Test to determine whether assets are securities, it hasn't been easy, as most of these assets are complex and have multiple applications. [14]

While the SEC insists that Ether coins fall under its jurisdiction as securities, the CFTC considers that it is more of a commodity since its release in 2014. [16] Read: Yahoo! Japan Confirms Entrance Into the Crypto Space Five ICO Projects Expected to be Approved The Thai Securities and Exchange Commission (SEC) is expected to approve five initial coin offering (ICO) projects once the law to regulate cryptocurrencies and ICOs goes into effect, according to the Bangkok Post. [17] The U.S. Securities and SEC have as of late achieved a choice with respect to the status of tokens issued in the notorious DAO ICO which has constrained numerous undertakings and financial specialists to reevaluate the subsidizing models of numerous ICOs. [18] Cryptocurrency losses? The attorneys at Sallah Astarita & Cox include experienced former SEC staff attorneys, and securities attorneys with decades of experience in securities manipulation cases. [19] The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. [19]

"The SEC is right to insist that digital currencies, such as bitcoin, which replace sovereign currencies, such as the dollar, sterling, yen and euro, are not securities," he said. [20] U.S. The president of the Securities and Exchange Commission (SEC) Jay Clayton affirms that the SEC will not relax the rules in the future in the case of cryptocurrencies and that while Bitcoin is still a commodity, all the initial offer cards of coins (ICO) or coins offered through a fundraising process classify as securities. [20] He went on to say that if the SEC prosecutes anything prior to the date of their declaration that all ICOs are securities, he will be the greatest thorn in the SEC's side since the founding of the U.S. Constitution. [21] The chief of the new cyber unit with the Securities and Exchange Commission (SEC), Robert Cohen, touched a sensitive topic regarding ICOs. [22] "The head of the SEC declared today that all ICOs are securities. [21] While public services are generally exempt from SEC rules, securities, on the other hand, often represent shares in a companys offerings. [20] SEC Commissioner Amy Starr, along with Chairman Jay Clayton answered the "securities or utility? question in a panel meeting in Atlanta. [21]

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Though the SEC is treading carefully on the cryptocurrency turf, it does not plan to ban the ICO method of fundraising, which was clarified by Robert Jackson, the Commissioner of SEC. The agency is wary of pump-and-dump schemes that are particularly common in ICOs, and declaring every ICO as a security would help dissuade bad actors from taking advantage of what still remains to be a largely unregulated system. [1] In late April, SEC Commissioner Robert Jackson told CNBC the agency was not looking to ban the fundraising process known as initial coin offerings, or ICOs, and remains open to a legal avenue for crypto investments. [23]

A token, or a digital asset used in a fundraising process known as an initial coin offering, or ICO, are securities by Clayton's definition. [23] The agency is also not adjusting rules for initial coin offerings, and Clayton underlined that tokens or digital assets used in that fundraising process are securities. [23]

Clayton cryptocurrency tokens used issued during ICOs are securities. [3] Clayton made it clear in March that all ICOs constitute securities, and reiterated that Wednesday saying "if it's a security, we're regulating it." [23] The head of the Securities and Exchange Commission Chairman made it clear Wednesday that the agency won't be bending the rules for cryptocurrency when it comes to defining what is or what isn't a security. [23] For instance, Ripple Labs has been under fire lately, being sued by an investor who claims to have incurred losses while trading XRP coins - the cryptocurrency token offering of Ripple Labs - accusing the company of violating federal and state securities laws. [1] Both Ethereum and Ripple have vehemently refuted the notion that their tokens are securities. [3]

Commenting on the debate, Clayton said that cryptos like Bitcoin are not securities. [3] Clayton said the U.S. has built a $19 trillion securities market that's "the envy of the world" following the current rules. [23]

Utility tokens often garner more practical uses than securities and allow customers direct access to a company's products or services. [2] It is raising money for a project where I give you my money, you give me some type of right back that reflects a return on a project, that's securities offering. [4] "We?ve been very clear for a long time on how to conduct fundraising when you?re offering securities. [4] "We are not going to do any violence to the traditional definition of a security that has worked for a long time," U.S. Securities and Exchange Commission Chairman Jay Clayton told CNBC Wednesday. [23]

Chairman of the United States SEC, Jay Clayton says Bitcoin is absolutely not a security. [3] SEC Chairman Declares that Bitcoin is not a Security, but ICO tokens are. [3]

Clayton says that contrary to popular belief, the SEC is willing to assist ICOs to enter a plane of legitimacy, granted their organizers are willing to comply with the organization's rules. [2] The SEC chief went on to say that cryptocurrency startups who want to make a private sale of their tokens need to follow the private placement rules. [3] If crypto entrepreneurs wish to conduct an IPO using a token then they must file the necessary financial statements and disclosures with the SEC. [3] Fundstrat co-founder Tom Lee and other bitcoin pundits have predicted that institutional investors need more guidance from regulators like the SEC until they fully buy into crypto. [23] This clarification by the SEC removes some of the uncertainty that has been swirling around the crypto sector and serves to strengthen the overall proposition of many major cryptocurrencies. [2]

In defense, Ripple Labs argues that the XRP should not be classified under security, but also maintains that the SEC should be the final authority on the decision. [1] In response to a question about the SEC changing its rules to accommodate the digital currency market, the SEC boss said no such accommodations would be given. [3] I?m very pleased with my colleagues at the SEC because I think we?re very open about what we need for you to satisfy our rules. [3] The SEC is "happy to help you do that public offering" if issuers take the responsibility SEC laws require, he said. [23] The chairman also addressed a growing debate over which cryptocurrencies should fall under SEC jurisdiction. [23] Since the emergence of Bitcoin futures in December 2017, the focus has once again turned to Bitcoin ETFs and whether the SEC will allow it. [3] The SEC picked a new leader for its emerging cryptocurrency division. [23] "Does the SEC have any official position that relates to Blockchain technology because right now, without clear guidance, a lot of new technologies are moving overseas. [4] One month later, the SEC created the website HoweyCoins.com to show investors some of the ways a site can look valid when it actually could be a scam. [23]

"We are not going to do any violence to the traditional definition of security that has worked for a long time," SEC Chairman Jay Clayton told CNBC Wednesday. [23] The SEC chairman refused to comment on specific Altcoins concerning their status as currency or security. [3] The SEC chairman described these assets as pure digital currencies used for facilitating transactions. [3]

On the other side of the argument, many cryptocurrency proponents insist that their tokens are utilities; digital coins that provide access to a platform. [3]

The solution to this predicament rests in the Securities Act of 1933 and the Securities Exchange Act of 1934, that outline the government's view towards financial regulation. [1] A token, or a digital assets used in a fundraising process known as an initial coin offering, or ICO, are securities by Clayton's definition. [6] He said there will be no adjustment of the rules for initial coin offerings and Clayton underlined that tokens or digital assets used in that fundraising process are securities. [6]

He continued, saying that while Bitcoin remains a commodity, all tokens from initial coin offerings or ICOs still classify as securities. [5]

Clayton reiterated his position in March when he said that all ICOs constituted securities, saying "if it's a security, we're regulating it." [6] Through investing in securities, users can gain capital or profit, subjecting security tokens to strict regulatory scrutiny. [5] Proof of work was one of the main reasons why bitcoin was deemed to not be a security in the SECURITIES AND EXCHANGE COMMISSION v. [9]

The comments from Nigel Green, founder and chief executive of deVere Group, come after Jay Clayton, the chair of the SEC, the U.S. financial regulator, told CNBC recently that Bitcoin is not a security. [8] The SEC assumes jurisdiction of the security if simply 1 U.S. citizen invests in the token, regardless of how its claimed not to be open for the U.S. and regardless where the headquarters is located in the world. [9] Here is wisdom: the SEC needs to acknowledge that many ICO tokens may have begun their life as a security but are no longer a security. [9] Now you are beginning to understand, but you left off another crucial aspect. the SEC is heavily incentivized to fine the ICOs because they can dramatically increase their budget, bonuses and salaries and centralized companies that sell a token are easy to fine and what really benefits them is few victims will want to come forward to claim a refund due to privacy concerns which means even more of those fines can increase the SEC's budget. [9] Clayton further states that the SEC is willing to assist ICOs towards legitimacy, contrary to popular belief, under the condition that their organizers are willing to comply with the rules of the SEC. [5] SEC acts so weird and their actions are unexpected, sometimes they are being friendly and the next day they wanna ban ICOs and crypto. [9] The SEC continues to demonstrate naivetwhen it comes to ICOs and cryptocurrency. [9] Interesting question if ICOs that have already happened could be regulated in the same manner by the SEC as future ICOs- it's not clear (to me anyway) that the SEC has the ability to retroactively apply regulation; more likely any action is forward looking with strong "encouragement? for existing ICOs to comply. [9] A few weeks ago, the SEC released a page featuring a mock fraudulent ICO in another effort to educate the public as to what to watch out for. [24] Therefore I welcome SEC guidelines/regulations to remove the bullshit ICO scams. [9]

McAfee disagrees, saying, "Even though the SEC keeps on insisting coins are a security, they are not." [25] You aren't supposed to like the SEC or security lawyers or have a beer with them. [9] What is important about the videos is insight into how the SEC thinks and security lawyers think. [9] If you can't ask SEC if something is a security or not, then who can you ask? Who do you trust? They have had more than enough time to state if something is a security or not. [9]

Like the SEC, FINMA recognised that tokens can fall into three categories, and decided that it would classify projects on a case by case basis. [24] The Bottom line is ETH will be effected regardless how the SEC treats it because almost all ICO's and token sales crowdfunded in ethereum. [9] The market certainly does not have billions of dollars of buy limit orders preset for ethereum to absorb this liquidity crunch. even Bitcoin will be effected if the SEC starts prosecuting(merely less so). [9] What is the topic at hand however is how the SEC is going to act and the consequences from their actions on ICO's and Ethereum. [9] If pushed to act today the SEC will be forced to rely on precedent which is not really applicable to crypto. [9] "This clarification by the SEC removes some of the uncertainty that has been swirling around the crypto sector and serves to strengthen the overall proposition of many of the major cryptocurrencies." [8] Given that this technology is unstoppable, it would behoove the SEC to engage with the crypto community with respect and understanding. [9]

Cryptocurrency is borderless in nature, and so the protection that a local financial watchdog (such as the SEC) can afford is often limited. [24] The SEC has had decades of experience working with DEXs, we just called them dark pools or "dark money" during the financial crisis. [9] The SEC has a major blindspot issue right now that ought to be addressed by the U.S. Congress sooner rather than later. [9] The chairman was addressing a growing debate over which cryptocurrencies should fall under SEC jurisdiction. [6] Go deeper: The SEC even concocted a bogus white paper, the must-have academic ballast for cryptocurrency startups (real or fake). [26] The SEC appointed a leader to its emerging cryptocurrency division. [6] SEC aims to convince NY Court it must prosecute alleged cryptocurrency scammers - FinanceFeeds and tags, as close as possible to the opening tag. [10]

The Commission says that this theory is wrong: what actually happened is what matters, and what happened here, according to SEC, is that the defendants knew they were selling PlexCoin to United States residents. [10] More precisely, SEC says that the PlexCoin website and Facebook page were accessed by residents of the United States from approximately July 2017 through the present. [10]

More generally what you?re forgetting is that the SEC (and Mr. Jay Clayton) is an organization of lawyers - they?re not taking the most aggressive approach they could they?re taking the most conservative. [9] Another good clarification point; When we talk of SEC guidance we?re talking about written guidance that has been vetted by a ton of lawyers and has the implication of precedent. [9]

The Court need not preoccupy itself with canards about the supposed crippling of the world's digital assets markets should it go after PlexCoin and the people behind this scheme, the SEC says. [10] I have heard some sources say that if the SEC actually tried to crackdown on Ethereum, the Ethereum Foundation would most likely win the court case which is why they aren't really doing much than yap their flaps at this point. [9]

"Cryptocurrencies: These are replacements for sovereign currencies, replace the dollar, the euro, the yen with bitcoin," SEC Chairman Jay Clayton told CNBC on Wednesday. [6] SEC chairman Jay Clayton speaks at Stanford University Rock Center for Corporate Governance. [26]

This would all be moot if Congress passed a law that defined and classified cryptocurrency as a separate type of asset class from securities with its own rules. [9] A company with a central corporate organization issuing an asset as a tool to raise capital and investors purchasing said asset with an expectation of participating in the profits of said corporation is literally the definition of issuing securities. [9] They are more like laundromat tokens: they have utility and are used as such, and therefore are not securities. [9] Bittrex has been very careful with their listings considering their status as securities, now theoretically they'd just have to delist all tokens like Bloom/BLT for example. [9] Whether or not crowdfunding securities or "investment tokens" without regulatory approval is a good thing is a long nuanced discussion. [9] The U.S. has built a $19 trillion securities market, Clayton said, that's "the envy of the world". [6] Bitcoin and ethereum will likely never be classed as securities given their decentralize nature. [9] Please don't take my word for it, speak with a securities lawyer to verify for yourself or watch the video above or watch these videos from a securities lawyer who has experience with cryptocurrencies. [9] The case is captioned Securities and Exchange Commission v. PlexCorps (1:17-cv-07007). [10] "This non sequitur suggests it would be preferable for would-be securities peddlers and/or fraudsters using modern technology to inundate American financial markets with (fraudulent) products by simply moving their servers offshore. [10] Wall Street realized the benefits of peer to peer securities trading years ago. [9]

The Chairman of the U.S. Securities and Exchange Commission Jay Clayton explained that the regulatory body will not bend its rules on cryptocurrencies anytime soon. [5] The U.S. Securities and Exchange Commission has released a guide to ICOs on its website, announcing the move with a post on its Twitter page. [24] The U.S. Securities and Exchange Commission is so desperate to help people avoid initial coin offering scams that it created its own fake one--cleverly named " HoweyCoins " (after a celebrated Supreme Court ruling ) --to educate people. [26]

The defendants also insist they were about to return funds to U.S. clients. [10] Waiver Failure of either Party to insist upon strict performance of any provision of this or any Agreement or the failure of either Party to exercise any right or remedy to which it, he or they are entitled hereunder shall not constitute a waiver thereof and shall not cause a diminution of the obligations under this or any Agreement. [24]

Today Eidoo, the multi crypto wallet and hybrid exchange application announced that it's one of the first crypto companies to have been awarded the Financial Services Standards Association (VQF) license, thanks to its Know Your Customer (KYC) process that it insists on for its ICO participants and exchange users. [11] Ethereum and Bitcoin are being reviewed by the Securities and Exchange Commission to determine the key differences that indicate a crypto token is acting as a security. [12] The stance on ICOs was also the same -- that they are securities -- though no token or coin was mentioned by name. [27] The "much" qualifier follows his statements on April 7 that not all ICOs are frauds, but that many participants in the ICO industry nevertheless flout federal regulations governing securities offerings. [27] We do not accept compensation in any form for analyzing or reporting on any ICO, cryptocurrency, currency, tokenized sales, securities, or commodities. [12]

SEC filing: electronics maker Monster files for an ICO, aims to raise $300M, plans to sell "monster money tokens" to build an e-commerce site for its products -- Monster Products, Inc. has been losing money for years, but a $300 million initial coin offering (ICO) may be what it takes to turn the company around. [28] Beyond functionality, the SEC, CFTC, IRS, and other regulators also consider whether an ICO was held. [12] The SEC is very concerned about the possibility of market manipulation in certain crypto trading venues, a senior regulator revealed in an interview with CNBC. [14] Clayton, on the other hand, insisted that while the SEC will remain supportive of compliant industry players, it wouldn't change its set regulations which have existed for decades just to appease the crypto industry. [14] Only four cryptos are listed on the exchange, specifically because Coinbase does everything within its power to avoid a kerfuffle with the SEC. [13] Other players in this industry such as the brokers, dealers and also the exchanges which have their involvement in crypto-based transactions are required to make the necessary registrations with SEC in 90 days after the law has been introduced. [29] Both are wrong. (Although the SEC is looking into claims of manipulation, there's no concrete evidence right now.) [13] In his first interview since joining the regulator, he said that the SEC is very interested in encouraging the development of a more sound regulatory structure. [14]

SEC Chairman, Jay Clayton, took another step toward ICO regulation with several proclamations at a town hall in Atlanta yesterday. [27] Redfearn's interview came days after SEC chairman Jay Clayton strongly suggested that most of the digital assets currently trading on exchanges are doing so unlawfully as commodities. [14]

Clayton insisted that any such asset was under the SEC's jurisdiction and that it would regulate the offering and trading of those assets. [14]

If approved, these licenses will set Coinbase on a path to offer future services that include crypto securities trading, margin and over-the-counter (OTC) trading, and new market data products." (Source: " Our path to listing SEC-regulated crypto securities," The Coinbase Blog, June 6, 2018.) [13] Within 24 hours of this statement, Coinbase announced that it's been trying to become a federally regulated broker-dealer. (Source: " Our path to listing SEC-regulated crypto securities," The Coinbase Blog, June 6, 2018.) [13] Securities - Cryptos that act as securities are an investment in a common enterprise with the expectations of profits solely from the efforts of the promoter or a third party. [12] He also shied away from settling the biggest debate in the crypto industry today - whether Ether and XRP are securities. [14] It's a powerful technology? That technology, people have used to apply to fundraising? we?ve had pretty clear?rules on how to conduct fundraising when you?re offering securities. [27] I think that there will be more statements coming forward from the commission on this, but in the meantime we are highly encouraging any market participant involved in the space to really look at these products and run that test to determine whether or not they meet the prongs of being defined as securities. [14] "Blockchain technology has incredible promise for securities and other industries. [27]

BitShares works like Ethereum, which insists it isn?t a security, yet calls itself a security. [12] South Africa Insists on Calling Cryptocurrencies 'Tokens' : South Africa's central bank is choosing to call cryptocurrencies like bitcoin as "cyber-tokens? rather than currencies, arguing they do not "meet the requirements of money?. [30] Buterin insists that this model of fund raising is much safer than the ICO model. [31] Since digital coins can't be easily regulated, some question the investigation- but regulators insist the long-term benefits of the added surveillance will be worth it. [19] Breathlessly, Mr. Beck insists "digital assets are squarely at the intersection of some of the most significant trends reshaping the global economy, including: A new market paradigm, characterized by slow economic growth, low interest rates, and divergent central bank policies. [17]

The SEC choice may have given some lucidity to the status of utility versus security tokens; be that as it may, there are still a lot of space for testing the limits of legalities. [18] In the event that it does, it must be dealt with as a security and is liable to specific limitations forced by the SEC. [18]

After a spate of celebrities began endorsing various ICO projects, the SEC sent out a warning to investors about these kinds of endorsements, going so far as to say that the celebrities could be running afoul of "anti-touting" laws if they don't state what compensation they received. [32] While the SEC has not revealed which ICO projects will be approved, Mr. Thawatchai Kiatkwankul, the Commission's director of corporate finance in the equity department, was quoted by the news outlet: Out of 50 ICO projects expecting to raise funds from the Thai capital market, five are ready as initial pilot projects. [17] After gaining the approval of the ICO portal, the SEC will take about two months to review the ICO before approving it. [17] Citing that ICO projects have growth potential, he further noted that the SEC will work with ICO portals to screen potential scams. [17]

Images courtesy of Shutterstock and Thai SEC. Need to calculate your bitcoin holdings? Check our tools section. [17] This kind of promotion, playing to cryptocurrency enthusiasts' (and the wider world's) fear of missing out (FOMO), is such a problem that the SEC has repeatedly warned investors about such advertising. [32] The SEC charged four individuals for their roles in a fraudulent scheme that generated nearly $34 million from unlawful stock sales and caused significant harm to retail investors. [19] The SEC announced the unsealing of fraud charges against a Mississippi company and its principal who allegedly bilked at least 150 investors in an $85 million Ponzi scheme. [19]

The SEC announced additional fraud charges stemming from an investigation of Centra Tech Inc.' s $32 million initial coin offering. [19] In the U.S., the SEC has issued a public statement reaffirming registration and regulatory requirements for online platforms trading cryptocurrencies. [33] The SEC announced settled charges against broker-dealers Chardan Capital Markets LLC and Industrial and Commercial Bank of China Financial Services LLC (ICBCFS) for failing to report suspicious sales of billions of penny stock shares. [19] A bit over a week ago, a commissioner for the agency expressed concerns with regards to how Ethereum should be classified, throwing the ball at the SEC for an answer. [16]

The North American Securities Administrators Association (NASAA) is coordinating with U.S. and Canadian regulators to weed out fake ICOs and other crypto scams, with as many as 70 investigations already underway. [19] Numerous view ICO extends as unregulated securities that enable organizers to raise an unjustified measure of capital, while others contend it is an advancement in the customary wander subsidizing model. [18]

"Operation Cryptosweep? hits ShipChain : The securities division of the South Carolina's Office of the Attorney General has ordered blockchain startup ShipChain to stop operating in the state. [30] The blog is part of the online legal information site SECLaw.com - The Securities Law Home Page, and the product of the work of securities lawyer Mark J. Astarita and the securities law firm of Sallah Astarita & Cox, LLC, with offices in New York, New Jersey and Florida. [19] He is a partner in the securities law firm of Sallah Astarita & Cox, and his personal lawyer website is at Securities Lawyer. [19]

Have a question? Email Mark at [email protected], or use our securities lawyer contact form. [19] "The Fed now manipulates the money supply through buying and selling securities with a select group of big banks and by paying them interest on the reserves they deposit at the Fed -- currently a tidy 1.75%," Mrs. Bair continued. [17] The Securities Law Blog is edited by nationally known securities attorney Mark Astarita. [19] Mark is also the editor of our main site, SECLaw.com - The Securities Law Home Page. [19]

Nicknamed "Operation Cryptosweep", it has the approval of Head of the U.S. Securities and Exchange Commission, Jay Clayton, who applauds lawmakers for cracking down on fraud in the ICO markets. [19]

The order is part of a much larger "Cryptosweep" which was applauded by SEC chairman Jay Clayton earlier this week. [30]

RANKED SELECTED SOURCES(33 source documents arranged by frequency of occurrence in the above report)

1. (34) SEC Chief Doubles Down on ICOs as Securities Stance : ethtrader

2. (16) Bitcoin is Not a Security, Says SEC Chairman - Ethereum World News

3. (14) The Securities Law Blog

4. (13) SEC Chairman Clayton says agency won?t change definition of a security

5. (10) SEC Director Shares Insight on State of Crypto Regulation | Crypto News Monitor | Crypto news from the worlds most reputable sources

6. (8) SEC aims to convince NY Court it must prosecute alleged cryptocurrency scammers - FinanceFeeds

7. (8) SEC Chairman: Cryptocurrencies Like Bitcoin Are Not Securities, but .

8. (8) The Cryptograph | SEC: BITCOIN CAN REPLACE DOLLAR & NOT SECURITY BUT ICOS ARE - The Cryptograph

9. (7) SEC firm on not amending securities law to suit ICOs -- FreightWaves

10. (7) Ripple Price Forecast: SEC Updates, XRP vs SWIFT, and More

11. (7) CryptoCurrency News, Rumors, and Chatter | PiMP Forum

12. (6) What Is BTS? Introduction to BitShares | Crypto Briefing

13. (6) Clayton: Most ICOs are Securities, but Bitcoin and Others aren?t - CoinWire

14. (6) QUICK TAKE: SECs Crypto Approach Gets Vote of Confidence - Markets Media

15. (5) "Three Rs of ICOs": US SEC Releases New Information Page | Finance Magnates

16. (5) SEC: ICOs Are Securities - "How much clearer can we be on this point. " - The ICO Journal Tech Talk

17. (4) What is the best ICO to invest in 2018? - Quora

18. (4) SEC Closes Debate on ICOs, Insists They Are Securities

19. (3) Cryptocurrencies Like Bitcoin Are Not Securities, but . - Bitcoins Global News

20. (3) John McAfee calls SEC Chairman out for a debate on CNN!

21. (3) The SEC debuts its own (phony) ICO - Axios

22. (3) ICO Scams, Antsy Enterprises and Massive Hacks: This Week in Crypto

23. (2) Regulation | CryptoNinjas

24. (2) New associate director of the SEC's Division of Corporation Finance will coordinate ICO and crypto efforts

25. (2) CFTC Issues Advisory for Businesses Handling Cryptocurrencies - Cryptovest

26. (2) Pink Taxis, Red Flags: A Deep Dive Into a Sketchy ICO - CoinDesk

27. (1) Feds Eyeing Regulations to Hit Anonymity of Cryptocurrency - Bitcoinist.com

28. (1) John McAfee Sits Down With CWN to Discuss State of Crypto World | [blokt] - Blockchain, Bitcoin & Cryptocurrency News

29. (1) Techmeme: SEC filing: electronics maker Monster files for an ICO, aims to raise $300M, plans to sell "monster money tokens" to build an e-commerce site for its products (Brady Dale/CoinDesk)

30. (1) Thailand's SEC to Approve 5 ICOs in June - cryptona

31. (1) DAO + ICO = DAICO - a new and secure way to raise funds

32. (1) USA news - Cointelegraph

33. (1) Ripple Insists Market Stops Referring to Its Token As "Ripple" | ?rypto?omes

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