This has generated a great deal of consternation, and created a chilling effect on innovation and fundraising, particularly by ICOs. In this article we examine the actual laws and procedures governing such actions by the SEC, in order to examine possible responses by a target, and hopefully determine whether all this concern is really justified.
OMG we got a letter from the SEC!
Nobody likes getting correspondence from a government agency. Even if it's from the Lottery Commission, it probably doesn't mean anything good. Because "I'm from the government and I'm here to help" is a laugh line. But is pushing the Panic button really warranted just because the sender is the SEC?
The Securities Exchange Commission (SEC) is the agency charged with enforcing the securities laws of the United States. As such, it is a part of the executive branch of government, ultimately reporting to the President, although not without oversight by congressional committees. The first question one should ask is: why would a firm in the crypto space be getting a letter from this agency?