Latest topics
» Cops Take Shelter Dogs On Rides Around Town To Increase Their Chances Of Adoption
Today at 2:49 pm by Consciousness Of Economic

» McDonald’s French Fries Found to Contain Silly Putty Ingredient and Petroleum Chemical
Today at 2:46 pm by Consciousness Of Economic

» OK, Let’s Talk Immunity
Today at 2:42 pm by PurpleSkyz

» They wouldn't lie to us about THIS - Would You NASA?
Today at 2:40 pm by PurpleSkyz

» TMZ Reports Ginsberg Alive
Today at 2:36 pm by PurpleSkyz

» NIBIRU News ~ INCREDIBLE SIGHTINGS ARE BEING WITNESSED plus MORE
Today at 2:32 pm by PurpleSkyz

» Transparent Solar Panels Will Turn Windows Into Green Energy Collectors
Today at 2:30 pm by PurpleSkyz

» UFO Disguised As Comet Slowed Down Rotation When Nearest To Earth
Today at 2:25 pm by PurpleSkyz

» Above Majestic
Today at 12:55 pm by Consciousness Of Economic

» 16 DAY FORECAST OUTBREAK CONTINUES PACIFIC #WEATHER WARFARE LIVE!! #ANALYSIS
Today at 12:54 pm by Consciousness Of Economic

» A Box of Chocolates
Today at 12:54 pm by Consciousness Of Economic

» Tyranny Rolls On: UN Travel Systems Grant "Authority To Transport,' Say Bye Single Family Homes
Today at 12:53 pm by Consciousness Of Economic

» Hoodwinked Bamboozled Satanites
Today at 12:52 pm by Consciousness Of Economic

» Russell Means: Prove Me Wrong
Today at 12:51 pm by Consciousness Of Economic

» Electricity - Lasers from SPACE - UTILITIES Have a "BIG" SECRET and SUN TAX - RAIN TAX
Today at 12:51 pm by Consciousness Of Economic

» 1925 Articles Of Incorporation - United States Corporation Company
Today at 12:49 pm by Consciousness Of Economic

» FLAT EARTH BRITISH. Tartarian Beauty ! Tartry Good Or Evil? Answered. & Mud Bricks!
Today at 12:49 pm by Consciousness Of Economic

» Politics in the Pub - WIKILEAKS & FUTURE OF DEMOCRACY - Caitlin Johnstone - 14/2/19
Today at 12:48 pm by Consciousness Of Economic

» WWWIII HAS BEGUN(!)DC ANNOUNCES INTENT TO INVADE PEACEFUL NON THREATENING COUNTRY FOR PROFIT(!)
Today at 12:47 pm by Consciousness Of Economic

» California: Mysterious ‘Wind-Borne’ Disease Causing Heart Failure in Kids
Today at 12:26 pm by Consciousness Of Economic

» UFO News ~ Huge UFO traveling in space next to Orion Nebula plus MORE
Today at 10:18 am by PurpleSkyz

» Incredible Finds in a Cave in Ecuador Shook The Scientist - Artifacts of Pre-Flood Civilization
Today at 10:08 am by PurpleSkyz

» #QTard Drama Theater - Q'd.. The Real Red/Green Castle Anons plus more
Today at 10:02 am by PurpleSkyz

» Quietly, Regulus ushers in springtime
Today at 9:48 am by PurpleSkyz

» #LIVE #QANON NEW Q #TIMELINE CONFIRMED BY Q ARREST COMING SOON @potus
Today at 3:23 am by LadyDragon

» #LIVE #QANON NEW Q #CENSORSHIP ON THE UPTICK @potus
Yesterday at 10:00 pm by LadyDragon

» Black Ops Operator Comes Forward And Tells All:Cody Snodgres
Yesterday at 6:37 pm by topspin2

» SUPER SNOW MOON February 19, 2019
Yesterday at 5:53 pm by PurpleSkyz

» Facts About The Aztecs In Mexico City
Yesterday at 5:26 pm by PurpleSkyz

CLICK THE SUBSCRIBE BUTTON BELOW TO RECEIVE OUR DAILY NEWSLETTER

A 2ND EMAIL COMPLETES THE ACTIVATION PROCESS




CLICK THE PURPLE BUTTON TO VIEW OUR LATEST POSTS






CHARITY WATER PROJECT
100% OF DONATIONS GOES TO PROVIDING CLEAN WATER TO THOSE IN NEED


www.charitywater.org

1 in 10 people lack access to clean water. We’re on a mission to change that. Here’s how.



Private donors cover our operating costs so 100% of your donation will bring clean water to people in need.

www.charitywater.org




You are not connected. Please login or register

Out Of Mind » SCAMTASTIC RV/GCR NEWS - SHADY CHARACTERS, CHARLETONS & THOSE DETERMINED TO STOP THEM! » Dave Schmidt » Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report

Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report

Go down  Message [Page 1 of 1]

Carl Spackler


https://news.bitcoin.com/hundreds-of-icos-being-secretly-investigated-by-sec-claims-report/

Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report

Hundreds of startups are reportedly being “secretly” targeted by the U.S. Securities and Exchange Commission for their involvement with initial coin offerings. Companies that participated in ICOs are now scrambling to clarify whether their token constituted a security, and, if so, whether it was properly registered with or exempted by the SEC.
Also read: Europe, Japan and the ‘Drug’ of Quantitative Easing

SEC ‘Tightens the Noose’ on Startups That Used an ICO

Yahoo Finance and Decrypt claims that “Hundreds of startups that did token sales are finding out they’re in violation of securities law— including many that were sure they did it the right way.”  
The auspicious beginning of the present year came with subpoenas, characterized by the Commission as informational in scope. There appears to be more than mere cataloging of the crypto landscape, as “the Securities and Exchange Commission has significantly widened its crackdown on certain initial coin offerings, putting hundreds of cryptocurrency startups at risk.” The agency “has returned to many of those companies, and subpoenaed many more—focusing on those that failed to properly ensure they sold their token exclusively to accredited investors,” Decrypt notes.  

Formal litigation can be costly, taxing a given regulatory bureaucracy’s workload and clogging up courts and judges. It also appears the agency is at first moving to have suspected companies in violation settle. “In response,” Roberts explains, “dozens of companies have quietly agreed to refund investor money and pay a fine. But many startups that have been subpoenaed say they are left in the dark struggling to satisfy the SEC’s demands, and are uncertain of how others are handling it, according to conversations with more than 15 industry sources.”

IPOs Died in the US, Startups Resorted to ICOs

Compounding matters is how this widespread investigation was unearthed: anonymous sources due to the fact the agency formally “restricts them from discussing the matter,” Decrypt insists. Initial coin offerings are a twist on initial public offerings, IPOs, which have been effectively strangled out of existence in the United States within just the last few decades. Legacy American stock markets, for example, have something close to half the number of public companies listed as they might have otherwise.

Saddled with regulations, barriers to entry and countless legal frictions only hordes of lawyers can battle, smaller companies have been priced out of the IPO model for bringing a business to public market in the US. Instead, those that might have participated at one point wait in the queue at merger and acquisition wings of established juggernauts. That, or they leave the US altogether and try their hand in places such as Hong Kong, which has, sure enough, seen an IPO boom recent years.
ICOs, then, are at least part of a response to that environment. Unaccredited investors, with minimal friction, have accomplished in ICOs at least two things most analysts agree: financial democratization and innovation, but at the expense of a wildcat space filled with scams. A startup can in a manner of clicks become presentable enough to sell a proprietary digital token quickly.

A Game of Definitions

About a month after subpoenas were sent by the agency, Chairman Jay Clayton seemed to make the regulator’s opinion going forward very clear. During a Senate hearing on the subject of cryptocurrencies, Clayton stated flatly, “I believe every ICO I’ve seen is a security.” But what constitutes an ICO then becomes the question if every initial coin offering is subject to their jurisdiction. The agency “does not care” about semantics, the report scolds, even though some “companies that did ICOs called their offering something else, such as a ‘utility token’ or a ‘SAFT’ (Simple Agreement for Future Tokens, an ICO method in which investors buy a reservation for tokens yet to be launched).”  

Due to the cat and mouse nature of the space, “It is hard to say precisely how many ICOs occurred during the past four years,” Decrypt acknowledges. Thousands for sure, and more than “$20 billion has been raised in ICOs to date, but the ICO boom peaked in January 2018. Concerns over the legality of token sales have had a chilling effect.”

However, it is well known that all US firms anywhere near to offering a security are governed by the SEC in one form or another. And the agency does offer a formal exemption which asks participation be limited to vaunted “accredited investors” who earn more than $200,000 per year, for two years, and hold a net worth of at least $1 million – factors that probably led the company to seek an ICO in the first place. At that same Senate hearing, Clayton was asked how many had sought SEC approval. The answer came back ominously: almost none.
Will the SEC sorting out ICOs lead to a positive outcome for crypto markets? Let us know in the comments below. 


Images courtesy of Shutterstock.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum