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ICO News: US Congressmen Ask SEC for Clarification On Token Sales

The latest ICO news points out that a team of lawmakers in the United States has asked the chairman of the SEC (Securities and Exchange Commission) Jay Clayton to illuminate when the Initial Coin Offerings are to be treated as securities sales.

Representatives Darren Soto, Tom Emmer, Warren Davidson, and Ted Budd, along with 11 other Congressmen signed the said letter on Friday requesting Clayton to make it clear how the commission intends to approach token sales. The letter added that there has been a great deal of uncertainty at present pertaining to the treatment of sales and offers of crypto tokens. They feel the lack of certainty is creating obstacles in the way of innovation in America.

The letter further continues that the US lawmakers also want the SEC to explain the specific situations when an ICO will come under the category of “investment contracts.” It also wanted to know whether when a token has been sold as a security in the first place,  it can be regarded as a non-security at a later point of time or not.

Friday’s letter has been sent only a few days after Davidson asked the leaders from the field of cryptocurrency in a forum held in Washington D.C. to be vocal about any complaints they had related to the regulations in the country, according to CoinDesk.

ICO News: Need For Clarity On Token Sales

The forum saw many representatives and influencers from venture capital funds, crypto exchange, and Blockchain startup businesses expressing the requirement for a greater clarity on token sales,

According to this latest ICO news, the forum also saw multiple mainstream financial and cryptocurrency industries to offer a proper regulatory framework to facilitate Blockchain innovation. Meanwhile, the letter sent to the SEC by these 15 lawmakers also asked Clayton to provide answers for three questions related to the legal position of crypto assets and ICO tokens, CCN reported.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Pala Sen is an avid follower of fintech, travel and health updates, current affairs and entertainment news from all across the world and writing is a passion for her. She had been previously associated with the corporate world for several years and holds a degree in MBA and a postgraduate software diploma called GNIIT from NIIT.

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