Jay Clayton, Chairman of the US Securities and Exchange Commission [SEC] says that not all the ICOs are fraudulent when questioned about it during a talk at Princeton University.
Recently, two Founders of Centra Tech were charged by the SEC for fraud related to their ICO which has raised $32 million and had claimed partnership with Visa and Mastercard.
To this, Jay Clayton said that ‘not all ICOs are fraudulent’ and explained the actual SEC’s methods of fighting against fraud and added that this is actually helping, given that the technology is being used for fraud. The extent it is being used shows that government will eventually be harsh on the technology. In an interview last month, Cayton said that he believes that every ICO he’s seen qualifies as a security.
The Chairman of the SEC says:
“I think if we don’t stop the fraudsters, there is a serious risk that the regulatory actions will be so severe that they will restrict the capacity of this new security.”
He further added:
“Just because it is a security today doesn’t mean it will be a security tomorrow and vice versa”
SchidMarx, a Twitterati says:
“Here’s another way to put it: We may or may not go after you whenever we want.”
Aatish Ramkaran, a Software Architect says:
“Very positive statement from SEC chairman Jay Clayton on the need for ICO regulation.”
CryptoMaverick-Mex, another Twitterati says:
“I’m sure all the suits will be happy for regulations as it allows them to manipulate the market in a legal way.”
Cezary Graft adds:
“Better beneficial regulations (and getting rid of fraudsters) than a complete crackdown on the entire space”
SEC had announced that they will be reviewing fraudulent ICO markets after suspicious activities and had launched an investigation into all the firms related to cryptocurrencies and ICOs. They had even sent out subpoenas to many firms asking them to submit past and present reports including Bitfinex and Tether which led to the drop in the value of Bitcoin, Ethereum, and Litecoin.
The post SEC Chairman, Jay Clayton states ‘not all ICOs are fraudulent’ appeared first on AMBCrypto.
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