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The US Securities and Exchange Commission's (SEC) highest regulator fired another shot which are used to hide offers of unregistered securities.
In an interview with Fox Business, SEC chairman Jay Clayton reiterated that a significant portion of the ICOs he observed is qualified as a securities offering, even though they are sold as tokens of public utility.
"A lot of ACI and many of the ones I've looked at specifically are securities." They are offers of interest in a company where the buyer of the company ICO of the chip, you can call it a chip that you can call a security, is basically say that I am investing with you with the promise of future performance, that you will deliver me something in the future as a result of your efforts or because I am selling it to someone else who wants that return in the future. a title, and the job of the SEC is to regulate the offer and sale of securities. "
These are the SEC's first public statements about this nascent fund-raising model since reports revealed that the agency had issued assignments to 80 ICO operators, demanding that 39, they give documents related to their symbolic sales.
The SEC is also investigating other offers – including that of tZero, a subsidiary of the e-commerce company Overstock – although these companies have been invited to voluntarily release documents.
In a lengthy exchange, Clayton detailed one of the SEC's key issues regarding the state of the IoC markets, namely that issuers appear determined to "break [the] the traditional approach of public and private markets ". guidelines, the issuers of securities may choose to conduct their placement as part of a private placement or a public offering. Most IFAs, he said, have tried to do both.
"For some reason, people who sell ICOs seem to think that they do not need to follow one or the other way they seem to think that they can have the best of both worlds.A limited disclosure of a private placement and a public trading and a public call to the token savings.For a long time Since 1933, this has not been allowed, "said Mr. Clayton." Although I love this new technology, the new technology is not a reason to break our traditional approach to public and private markets. "
Meanwhile, a new letter written by a Treasury Department official suggests that country offices may have to register as money transfer companies, which makes them subject to the Bank Secrecy Act and other regulations incur criminal sanctions.
Clayton advised investors to "think long and hard" before contributing to ICOs that do not explicitly demonstrate compliance with SEC regulations, noting that there is little the agency can do to protect investors.
But for ICO operators, he had a more explicit admonishment:
"Respect the law," he warns, "we watch, the others watch."
Featured image from YouTube / Senator Elizabeth Warren.
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