With the legal status of ICOs on shaky ground, the chairman of the US SEC chairman has weighed in on the subject with some encouraging comments.
SEC and ICO’s
Jay Clayton, chairman of the US Securities and Exchange Commission (SEC), seems to have no hard feelings for initial coin offerings (ICOs) as long as they abide by the securities laws of the United States. In a speech delivered last week, Clayton broached the subject of ICOs by acknowledging that their lack of accountability creates some issues, but he noted that this should not tarnish the idea of coin offerings as a whole.
“A number of concerns have been raised regarding the digital assets and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in the traditional equities and fixed income markets, with correspondingly greater opportunities for fraud and manipulation. I believe that ICOs can be effective ways for entrepreneurs and others to raise capital. However, the novel technological nature of an ICO does not change the fundamental point that, when a security is being offered, our securities laws must be followed,” Clayton said.