IPFS News Link • Bitcoin
The SEC just pulled the rug out from under cryptocurrency ICOs…
• http://www.naturalnews.com, by: Ethan HuffDepending on how a particular ICO is set up, the SEC explained in a press release, it may be subject to securities laws for the purpose of protecting investors from being taken advantage of by shady companies that might be trying to use the platform to commit crimes.
The SEC issued a comprehensive investigative report that cautioned market participants who engage in the buying and selling of digital assets via "virtual" organizations that some of them will be subject to these new requirements. While some crowdfunding contracts will reportedly be exempt from this classification, including those that register with the SEC and the Financial Industry Regulatory Authority, others will face scrutiny as part of a vetting process.
Some see this latest crackdown as a possible threat to the sustainability of blockchain world, while others agree that increased regulations can help to guard the integrity of the cryptocurrency markets while simultaneously protecting investors against fraud.