In what appeared to be a latest ICO review, Stephanie Avakian, the co-director of America’s Securities and Exchange Commission mentioned that “more substantial remedies” are likely to be recommended by the regulatory agency.
Such remedies will be imposed on those who do not adhere to the registration requirements on the ICO (Initial Coin Offering) in the future. Avakian mentioned in her speech that certain section of the investors finds these offerings extremely exciting for the “utility of the underlying Blockchain”, and the “novelty of ICOs.”
At the same time, the co-director noted that ICOs have generated an element of buoyancy in the market that can hide the fact that such investment tools have high-risks attached to them. The reason for this is they may lack viable products, be “outright frauds” or have defective business models.
Avakian further said that the SEC has made attempts of being aware of ways of dealing with the ICO registration cases, which are not fraudulent. In fact, the agency is serious in asserting valid means of raising funds while ensuring that the investors enjoy the mechanisms for legal protections in place.
The transcript of her speech was uploaded on the website of the SEC. The co-director mentioned the set of principles, which guide the decision-making process of the agency when it is about setting ICO regulation. She also mentioned how the agency was handling “misconduct” in the virtual asset space, according to SEC.gov.
ICO Review: Enforcement Actions Of The SEC
The commission is still keeping a close vigil on the wrongdoers even though the fine amounts in dollars and its enforcement action volume have dropped this year. However, the SEC is yet to make its enforcement statistics for the fiscal year 2018 public.
According to the latest ICO review, Avakian did not disclose how the totals in 2018 will be different from the previous years in her speech. She suggested though that they could drop again partially because of the decisions made by the Supreme Court, which have kept in check the ability of the SEC to regain funds for the affected investors, Toronto Star 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. ]