The chairman of the US Securities and Exchange Commission (SEC), Jay Clayton, has acknowledged the potential of initial coin offerings as a fundraising method, but also warned that “securities laws must be followed”.

He said that the Commission and its staff have devoted “a significant amount of time” this year to Distributed Ledger Technology (DLT), digital assets and ICOs. According to him, he expects this trend to continue well into 2019.

Stating further, Clayton said, “I believe that ICOs can be effective ways for entrepreneurs and others to raise capital.” However, he added that securities rules must be adhered to where appropriate.

However, the SEC chairman also signaled that the regulator will continue to enforce securities rules when appropriate.

Clayton underlined that there are “a number of concerns” relative to ICOs. More precisely, he pointed out the fact that, according to him, ICOs are currently operating in a way that grants substantially less investor protection than that of traditional equities and fixed income markets.

 In other words, this leaves greater vulnerabilities in the system and increases the risk of fraud and manipulation.


Like it? Share with your friends!

513
1.1k shares, 513 points

What's Your Reaction?

lol lol
66
lol
scary scary
666
scary
omg omg
600
omg
wtf wtf
466
wtf
win win
333
win
fail fail
266
fail
Love Love
200
Love
hate hate
600
hate
confused confused
133
confused
avatar
  Subscribe  
Notify of
Choose A Format
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Meme
Upload your own images to make custom memes
Image
Photo or GIF
Video
Youtube, Vimeo or Vine Embeds
Gif
GIF format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Countdown
The Classic Internet Countdowns