The head of the Commission on securities and exchange Commission (SEC) J. Clayton said that the regulator «closely watched» for companies that have announced interest in using the technology of the blockchain. As previously reported, in recent months the number of such companies has increased.
And although these advertisements contribute to rising prices of their shares, the actions themselves has caused suspicion of the SEC and other regulators, including FINRA, in connection with the possible abuse and potential fraud. The Chairman of the SEC announced that the Agency is pursuing this matter under the protection of investors.
«The SEC is closely watching companies that are changing their business model to benefit from the alleged advantages of the technology of the distributed registry. However, it remains to be seen whether such actions the securities laws», – he stressed.
Previously, the SEC has already suspended trading in the shares of the company UBI Blockchain, the price of which has increased significantly in the past year due to the policy-oriented cryptocurrency. According to MarketWatch, shares remain frozen.
Clayton also noted the actions of some lawyers, who are advising potential organizers ICO.
«The most disturbing thing is that there are ICO, involving lawyers helping promoters to structure product offerings with key features of the offering of the securities, but it’s called «ICO» that is quite similar to «IPO», – he stressed.
According to Clayton, the same problem created by the lawyers, which «seem to give ambiguous advice to the organizers of the companies regarding the use of technology of the blockchain», regardless of whether the associated token similarity with securities, in accordance with the laws of the United States.
«Therefore, I instructed the SEC staff to be more careful in the approaches to the ICO, which may be contrary to the securities laws of the United States,» he concluded.