Stephanie Avakian, Co-director of enforcement at the United States’ regulatory body – Securities and Exchange Commission (SEC) said in her speech that the regulator has a strict concern about the Initial Coin Offerings (ICOs) as per the report published as on 20th September. She further said in her statement that that “substantial remedies” will be enforced on those who failed to meet the registration standards on ICOs.
With this, the speech furnished with evaluating and measuring the effect of the SEC’s Enforcement program as reported on the regulator’s website. The main agenda for the SEC’s Enforcement Program especially for “ICOs and Digital Assets”. Further speaking to the subject matter, Avakian categorized the ICOs in three facets namely high-risk investment, inability to safeguard digital assets from cybercriminals and lacking established records of issuers.
Besides this, she affirmed that technology always adds value by formatting capital. With this SEC does not want “to stifle the legitimate use of technology and innovation to facilitate capital formation,” she further adds, “anyone who seeks to do so must do it in compliance with the federal securities laws.”
Avakian wants all the issuers to follow certain regulations in order to organize their ICOs. With this, the agency actively focuses on offering enough space where ICOs can operate more transparently by following all those legal compliance requirements in place. Amid this, based on the speech of Avakian, SEC is inclined to ward off all those complexities involved like illicit uses of raising funds, especially for crypto-related projects.
The real story against the cryptocurrencies was begun in 2017 when SEC issued a report stating the variety use of security regulations to the offer and sale of virtual tokens through the blockchain application namely “The DAO.” This confirmed the SEC’s active inclination on digital tokens citing them as an investment contract and “was a security, and to reiterate the fundamental principle that the federal securities laws apply.”
In a nutshell, Avakian concluded the attitude of the SEC that focuses on ICOs and cryptocurrencies. These innovative of finance and technology are such an essential for straightforward capital formation and space is the priority of SEC to look upon to the extent that the entire process works ethically, fairly and transparently. With this, SEC ensures to take stringent steps towards all those ICOs that have tried to manipulate investors!!