During a speech given at a Securities Enforcement Forum on Thursday, the co-director of the Securities and Exchange Commission (SEC) Enforcement Division, Stephanie Avakian made it
While the SEC sees and asserts the power of Blockchain technology, they are nevertheless fully aware of the danger that such digital technologies pose as vehicle for fraud. The risk towards investors and the general public must be mitigated, according to the commission's view. The co-director said:
"Blockchain technology presents many interesting issues and opportunities for capital raising. But, like many legitimate ways of raising capital, the popular appeal of virtual currency and Blockchain technology can be an attractive vehicle for fraudulent conduct. "
The SEC has already made it clear that we believe that a permanent structure for the consideration of these issues in the Cyber Unit will be maintained. they will be able to treat you in many cases, driving fear into the ICO market.
While this news may be a negative for some, the others have argued that the riffraff of the ICO world would actually improve the overall marketplace.