Their chairman described the actions taken by the Securities and Exchange Commission (SEC) to resolve unregistered securities offerings in a speech published on April 8, 2019. The document sheds more light on the Commission’s dealings with the crypto industry.
From the Chairman
It is impossible to trace the history of the growth of cryptocurrency without mentioning the SEC in the process. The commission has enjoyed a front row seat to witness and be involved in the evolution of the crypto market.
Several times, they have been forced to step in and shut down unregistered crypto businesses and are still yet to approve the coveted crypto Exchange Traded Fund (EFT). At the same time, they have given some insight into the legal status of digital assets and are studying the market via their fintech hub.
On April 8, 2019, a speech from SEC chairman Jay Clayton was published and highlighted the latest happenings at the commission with regards to crypto.
In a portion of the speech that touched on enforcing federal securities laws, Clayton mentioned that the commission has been forced to address a lack of compliance on the part of industry players.
“In the digital assets space, for example, the Division of Enforcement has brought cases that demonstrate that there is a path to compliance with the federal securities laws going forward, even where issuers have conducted an illegal unregistered offering of digital asset securities,” the speech reads.
It was also added that the path included disclosures to investors to enable them to make more informed choices. These choices involve seeking reimbursement or holding on to their already-purchased tokens.
While ICOs are hardly as profitable or popular as they once were, it is interesting to hear from the chairman just how unregistered ICOs are handled. First, it shows that there is some form of aid given to those who have unwittingly invested their money in unregulated offerings.
If there’s anything that the crypto industry has struggled with, it has been getting adequately defined laws and being able to adhere to them without any vagueness in the legal department.
The SEC themselves are being sued by Kik, for instance, on the grounds that their Kin token was wrongly classified as a securities token and that it is a utility token.