New SEC statement implies ICOs are here to stay

Recently, Stephanie Avakian from the Division of Enforcement in the U.S. Securities and Exchange Commission, a governmental body known to anyone who regularly reads news on cryptocurrency, has made a speech to her colleagues. Here it should be reminded that the United States authorities see ICO as securities trade and regulate them as such.

Initial coin offerings were mentioned in that speech, and after this mentioning we have all reasons to believe that the current SEC management thinks that initial coin offerings would not just disappear next month:

“As folks likely know, the Commission recently issued a Report of Investigation cautioning that offers and sales of digital assets by “virtual” organizations – often referred to as “Initial Coin Offerings” or “Token Sales” – are subject to the requirements of the federal securities laws, which can include the registration of securities offerings. Blockchain technology presents many interesting issues and can of course present legitimate opportunities for raising capital. But, like many legitimate ways of raising capital, the popular appeal of virtual currency and blockchain technology can be an attractive vehicle for fraudulent conduct. We think that creating a permanent structure for the consideration of these issues within the Cyber Unit will ensure continued focus on protecting both investors and market integrity in this space.”

The Cyber Unit, this means, will have a substructure within its framework that will solve blockchain-related, cryptocurrency-related and, primarily, ICO-related issues. Nobody (especially the United States authorities, which are much more competent in cryptocurrency market than governments of many other countries) would establish a permanent structure dedicated to the topic that, as some try to persuade us, is a bubble and will eventually blow up without any chances to rebuild or evolve.