SEC Chair Says 'We’re Seeing' As Firms Launch ICOs
SEC Chair Says 'We Are Watching' As Firms Found ICOs
Notably, he highlighted how some businesses are turning to the blockchain capital model after having issues trying to raise money by more prevalent ways, calling the trend “bothering”
Talking to Fox Business on Tuesday, ” Clayton remarked that he “enjoys this tech” – but said, he believes companies shouldn’t ignore existing securities law, irrespective of if a token sale has been conducted privately or openly.
On the flip side, he had a concept for firms seeking to launch their own classifieds earnings: “We’re seeing.”
The SEC chair also repeated his argument that lots of the tokens his bureau has reviewed fall below the definition of a security.
“Many ICOs and lots of the ones I’ve looked at specifically are still securities,” he told the network. “They’re offerings of interest within a venture where the buyer of the ICO of this token, you can call it a token that you can call it a security, is essentially saying I’m investing with you with all the promise of a future yield.”
Clayton said from the interview:
Finally, Clayton demurred when asked how the SEC would enforce its regulations, saying that there are both public and private options to violations of federal securities laws.
Picture Charge: Brookings Institute/Flickr
Published at Wed, 07 Mar 2018 05:00:56 +0000
“We have seen cases where firms appear to have had trouble raising money in a conventional private placement and have changed to an ICO to be able to increase the money. The business has not changed substantively, however it is a form-over-substance method to increase money. That is upsetting.”
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