US Security and Exchange Commission to go after ICOs who don’t fulfill proper registration requirements
The announcement was made by SEC co-director of enforcement Stephanie Avakian in a speech made on September 20th.
- Avarkian said that while she believes the blockchain technology might have some uses, cryptocurrencies are “high-risk” investments that are susceptible to fraud.
- The SEC has released public statements warning investors of the risk of ICOs. They believe investors excitement about the potential of ICOs could overshadow the risk associated with these types of investment.
- The SEC states that it just wants to “affirm valid ways to raise money” for ICOs that legally protect investors. Last November, the SEC released a noticed highlighting efforts by ICOs using celebrity endorsements.