US SEC Chief says not all ICOs are frauds, adding that he thinks that “distributed ledger technology has incredible promise for the financial industry.” In addition, the SEC Chairman has further stated that the steps taken by the regulatory body in the past months could, in fact, help the industry to become more mature.
6 April, AtoZForex – The US Securities and Exchange Commission’s (SEC) official seems to have adopted a softer stance in regards to the ICO market. Earlier this week, the US SEC Chairman Jay Clayton has rejected the idea that all ICOs are fraudulent.
US SEC Chief Says not all ICOs are Frauds
To be more specific, when asked whether the SEC’s enforcement action against the founders of Blockchain projects accounts for this admission, Jay Clayton has stated: “absolutely not.”
His remarks appeared during the discussion on “Cryptocurrency and Initial Coin Offerings.” Earlier this February, Mr. Clayton has stated that he believes that every ICO he has seen qualifies as a security. In fact, he has started his speech by telling that he thinks that “distributed ledger technology has incredible promise for the financial industry.”
In addition, the SEC Chairman has further stated that the steps taken by the regulatory body in the past months could, in fact, help the industry to become more mature. He has been quoted as saying:
“Is the approach taken in Washington by the SEC adversely affecting distributed ledger technology in other areas? My quick answer is that my hope is that it’s actually helping – because this technology is being used for fraud and to the extent that it’s being used for fraud, history shows that government comes down harshly on that technology later.”
Token sales are not utility tokens?
Additionally, he has further stated:
“I think if we don’t stop the fraudsters, there is a serious risk that the regulatory pendulum – the regulatory actions will be so severe that they will restrict the capacity of this new security.”
Moreover, Mr. Clayton has spoken in regards to the evolving terminology of the industry. He highlighted that one of the issues with the token sales is the fact that sometimes they are classified as so-called “utility tokens”. This condition would free them from any designation as a security.
He has also referred to his outlook that almost all token sales try to sell such products, in spite of the fact that they are, in reality, securities.
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