SEC Commissioner, Robert Jackson believes that ICOs need to follow certain security regulations. Jackson says that the crypto space has seen some troubling developments and sometimes it is difficult for investors to tell the difference between fraud and investment. He also mentions that the market would look at ICO market without any security regulation.
In an interview with CNBC, he said:
“I haven’t seen one of these yet that’s not a security. One of the things about ICOs that are interesting is if you want to know what our markets would look like with no securities regulation, the answer is the ICO market.”
He further added:
“We are right now focused on protecting investors who are getting hurt in this market. Down the road we will be thinking about, we should be thinking about ways to make those investments work consistent with those security laws.”
He also said that the comment doesn’t suggest that the SEC will ban or regulate the ICOs. However, they are working towards protecting the investors from fraudulent activities and that the investors will have to follow security regulations in future.
On February 6th, in a senate, Jay Clayton, the chairman of SEC said:
“The mission of the SEC is to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation.”
Clayton says that there have been many instances when the economy had been benefitted due to a rush into a certain investment. However, he also believes that when rules are not followed, it puts the investors at a higher risk of fraud, theft, volatility, manipulation, incorrect or non-existent disclosure.
Erik Voorhees, CEO of ShapeShift tweeted:
“99% of all human endeavors fail. It’s important that free people have the ability to take risks to find that 1% that don’t.”
Adam Hayes, a market enthusiast commented:
“Imagine that we can’t be sure if the apples being sold by fruit vendors are poisonous, and because so many apples are for sale we could not possibly inspect each one. Then don’t buy apples…”
Another Twitter user commented:
“Problem is that without appropriate regulations, most issuers to tend to take advantage of investors. Human greed is a powerful force.”
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