The ICO and cryptocurrency industry has flourished throughout the years. Many governments are choosing to regulate them to encourage investors and identify fraudsters. With such regulations in place, it will encourage more investors choosing regulated ICOs. It is crucial for investors to know where they are placing their money avoiding shady ICO start-ups.
In recent months, Securities and Exchange Commission (SEC) has been vocal about ICO illegal dealings, consequently prosecuting those that were found being deceitful. ICO start-ups and the general public, believe that SEC considers all ICOs as being fraud. However, this is not the case.
SEC role to assure good practice in ICO dealings.
During a speech, at Princeton University, the chairman of SEC, Jay Clayton explained that SEC does not see all ICOs and cryptocurrencies as a fraud. However, the SEC primary role is to protect consumers, by increasing regulatory analysis. Through meticulous regulation, SEC will help the industry to eliminate fraudsters and other scam artists that can easily manipulate customers.
In fact, SEC has been in the news many times dealing with ICO and cryptocurrency scams. SEC has also halted ICOs from continuing with their projects. Clayton continued to explain that, SEC does not want the government to implement strict rules on ICO, therefore discouraging start-ups and investors alike. By this, the SEC needs to be on the ball to eliminate ICO scams.
During his speech, Jay Clayton stated that it “Is the approach taken in Washington by the SEC adversely affecting distributed ledger technology in other areas? My hope is that it’s helping because this technology is being used for fraud and to the extent that it’s being used for fraud, history shows that government comes down harshly on that technology later.”
Moreover, he continued that if SEC “don’t stop the fraudsters, there is a serious risk that the regulatory pendulum – the regulatory actions – will be so severe that they will restrict the capacity of this new security.”
E&S Group is a leading law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at info@blockchainrocket.io to find out how E&S can help you in ‘making things happen’.
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