US SEC official weighs Stock market principles for crypto regulation


US SEC official weighs stock market principles for crypto regulation, as the US regulatory body believes that most ICO tokens might be classified as securities and, yet, don’t comply with the regulations that are established for the traditional securities. 

26 March, AtoZForex Numerous regulators and industry insiders believe that cryptocurrency markets do not have the proper regulatory oversights and lack rules at the moment. According to the online media reports, the senior with the US Securities and Exchange Commision (SEC), Brett Redfearn, has stated that the current state of cryptocurrency markets looks like the “Wild West”.

US SEC official weighs Stock market principles for crypto regulation

The Securities and Exchange Commission has concerns about the cryptocurrency market manipulation, money laundering, terrorist financing, and cybersecurity. Mr. Redfearn has stated in the article:

“I’m not sure all of the rules would translate over, but there are certainly principles that exist in that space that we have to then apply in some respect to what’s happening with crypto-asset trading.’

However, the SEC is not just concerned about the cryptocurrency and crypto-related activities. The US watchdog also closely monitors the initial coin offerings (ICOs) and token sales.

US SEC Warns about ICOs and token sales

Earlier, the US SEC has stated that investors should exercise caution while investing in ICOs and token sales. The US regulatory body believes that most ICO tokens might be classified as securities and, yet, do not comply with the regulations that are established for the traditional securities. Mr. Redfearn has stated:

“There are no registered exchanges, there are no registered ATSs (Alternative Trading Venues) trading any of these products. I’m not sure all of the rules would translate over, but there are principles that exist in that space that we have to then apply in some respect to what’s happening with crypto-asset trading.”

Some of the cryptocurrency market experts think that ICO and cryptocurrency markets will be improved upon once regulators set out appropriate regulatory rules to abide by. Proper regulations and measures could provide institutional investors with more confidence and courage to invest in the cryptocurrency space.

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