Thursday, March 1, 2018

BAM: The SEC is Going After the Cryptocurrency Related ICO Market

A government monster has entered the room.

The Securities and Exchange Commission has issued dozens of subpoenas and information requests to technology companies and advisers involved in the red-hot market for cryptocurrencies, reports the Wall Street Journal.

Notes WSJ:
The sweeping probe significantly ratchets up the regulatory pressure on the multibillion-dollar U.S. market for raising funds in cryptocurrencies. It follows a series of warning shots from the top U.S. securities regulator suggesting that many token sales, or initial coin offerings, may be violating securities laws.
According to WSJ, the wave of subpoenas includes demands for information about the structure for sales and pre-sales of the ICOs.

“We’re seeing the tip of the iceberg … there is going to be a ton of enforcement activity,” said Dan Gallagher, an SEC commissioner from 2011 to 2015.

A  soon-to-be published Massachusetts Institute of Technology study of the ICO market estimates that $270 million to $317 million of the money raised by coin offerings has “likely gone to fraud or scams,” said Christian Catalini, an MIT professor, reports the Journal.

People who think government isn't going to be all around cryptocurrencies and related businesses are delusional.



  1. @RW, would love to know what you think the price of BTC will be in 10 years.

  2. ICO's are mostly a scam. It takes work to make a project.