Latest topics
» POOPness for MAY 29: A PLACE TO CALL HOME - OH POOR ME SEND ME MONEY SUCKERS
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 5:43 pm by PurpleSkyz

» United Nations Launches Website Promoting ‘New World Order’ Amidst Coronavirus Pandemic
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 5:35 pm by PurpleSkyz

» Is there evidence that blood types and personality traits are connected?
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 5:29 pm by PurpleSkyz

» Feds GDPNow Plummets To -51.2%, 47% Small Businesses Expect To Close Permanently, Spending Collapse
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 5:19 pm by Consciousness Of Economic

» A Women Gets Her Contact Tracer Certificates and Tells All
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 5:18 pm by Consciousness Of Economic

» WHAT TheirMEDIA WILL NOT TELL YOU the PLAN Unrolls on Schedule
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 5:16 pm by Consciousness Of Economic

» Proxima b is more Earth-like than we thought
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 5:01 pm by PurpleSkyz

» Live: SpaceX Crew Dragon launch 2nd attempt
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 4:59 pm by PurpleSkyz

» Catching up on oceans, rivers and research during COVID-19
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 3:56 pm by PurpleSkyz

» PSYCHOLOGICAL OPERATIONS/Go Army
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 2:45 pm by Consciousness Of Economic

» WAS MINNESOTA ANOTHER FALSE FLAG?
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 2:38 pm by Consciousness Of Economic

» #QTard Drama Theater - Escape plus MORE
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 9:57 am by PurpleSkyz

» Why Was Wuhan Lab Locked Down When Outbreak Began?
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 9:54 am by PurpleSkyz

» Dr. Kendrick: I’ve Signed Death Certificates During Covid-19. Here’s Why You Can’t Trust Any of the Statistics on the Number of Victims
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 9:46 am by PurpleSkyz

» NASA cuts live feed after showing alleged Black Knight Satellite
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 9:42 am by PurpleSkyz

» RIOTS - someone is supplying rioters with pallet loads of bricks can you guess (((who?))) plus MORE
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 9:38 am by PurpleSkyz

» The Principlies of Propaganda by Goebbels
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyToday at 8:22 am by nairatmya@hushmail.com

» Dave Schmidt (Meta 1 Coin Scam) Zoom Meeting Just Happened! If We Know About It, So Does The SEC!!!
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyYesterday at 5:03 pm by Carl Spackler

» Former Minnesota Police Officer Derek Chauvin Arrested in Death of George Floyd!!! FINALLY!!!!
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyYesterday at 4:23 pm by PurpleSkyz

» UFO News ~ Mysterious UFO Captured Before Disappearing over Lima (Peru) plus MORE
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report EmptyYesterday at 4:14 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







You are not connected. Please login or register

OUT OF MIND » NEW CAGE WOO SLINGERS, UFO & DINARIAN FRAUDS & THOSE THAT BUST THEM OUT! » 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

Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report NooseKnot-300x225 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.
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report Ico-and-ipo
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).”  
Hundreds of ICOs Being Secretly Investigated by SEC, Claims Report Catandmouse
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