A senior official of the Commission on securities and exchange Commission (SEC) stated that a ICO, launching new cryptocurrencies that are actually a hidden offer of securities. And this can pose a threat to investors, she said.
Such opinion the assistant Director, SEC enforcement and the head of the working group on cryptocurrency Sepanik Valerie (Valerie Szczepanik) was expressed in a speech at the conference “the Future of financial fraud” in new York.
“They attract a lot of money, but do not meet the rules that apply for the protection of investors”, — said the assistant head of the SEC.
She gave specific examples of the ICO, but said that too many of them are not designed for the launch of cryptocurrency, and to raise money the company behind it. The investors get the opportunity to trade tokens — all this fully corresponds to the definition of securities according to the legislation, said Sepanik.
“What we are witnessing is a release of these tokens before the platform will be built,” — said the official SEC.
It does not are provided some basic requirements for transparency and disclosure established by the legislation. As a result, according to her, the regulator closely monitors like ICO and is already taking active measures to stop them.
Speaking at the same panel, head of Digital Currency Group is Barry Silbert (Barry Silbert) noticed that existing since the great depression securities laws may need to be updated to account for the emergence of cryptocurrency. But even he acknowledged that ICO is really risky, so his company is investing in the platform, not the currency.
Earlier, Commissioner, SEC Robert Jackson (Robert Jackson) said that the ICO need regulation, and all tokens must be equated to the securities.