US Securities and Exchange Commission has launched an investigation into companies related to cryptocurrencies and ICOs. All the companies working in the United States are being scrutinized. Undisclosed sources told WSJ that SEC has already sent subpoenas and information requests to a number of companies which are directly or indirectly related to the industry.
The US regulatory demands the working, sales, their pre-sale structure of various ICOs, both old and new. The inquiry is launched as ICOs in the US are not regulated by strict laws as other public offerings. They fear that a lot of them are not following the existing laws or are functioning unethically.
SEC has recently sent these kinds of subpoenas to a number of companies, the famous ones among them being Bitfinex and Tether. This also resulted in a drop in the value of cryptocurrencies like Ethereum, Litecoin, and Bitcoin which take up the major portion of the cryptocurrency trade in the US.
SEC Chairman Jay Clayton earlier commented,
“SEC will go hard and scrutinize on companies who look to capitalize on the perceived promise of an increased stock value following an announcement of a stake in cryptocurrencies and Blockchain technology”
While various state legislations are drafting laws which are aimed towards promoting the use of cryptocurrencies and relaxing a few rules imposed on them. The US federal agencies are being more skeptical about cryptocurrency unlike in the past.
The State of Arizona has passed a bill that will allow its people to pay their taxes in cryptocurrency and should that bill be signed by the governor and brought into effect, it will become the first state to accomplish it. There are other states such as Florida who are planning to draft similar laws.
Jay Clayton also mentions that,
“We are open to exploring with Congress, as well as with our federal and state colleagues, whether increased federal regulation of cryptocurrency trading platforms is necessary or appropriate. We also are supportive of regulatory and policy efforts to bring clarity and fairness to this space”
With all the dangers and volatility in the cryptocurrency markets, it is no surprise that the federal agencies are still going after cryptocurrency markets. If these frequent investigations and enquires are only to keep the companies in right track then it will increase the faith of people in cryptocurrency and blockchain.
Steven Roy, a cryptocurrency investor from Chicago says,
“As of now, I’m not perceiving this as bad news, there are real shit ICOs out there which are there to scam people. If regulations can protect people from investing in them then that’s a good thing”
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