SEC is preparing for a serious fight against fraudulent ICO

We all remember how in 2017 cryptocurrency filled the headlines, and the important events associated with Bitcoin (for example, the achievement of the historic old high of 20 thousand dollars) became one of the main topics in the media.

Potential investors have a choice — they can trade traditional digital currencies or become part of a perfect new virtual currency, investing in ICO. Industry ICO is already a multi-billion dollar industry and continues to develop and grow.

SEC ready to act

However, the decentralized nature of the ICO and the lack of control of the authorities admit the possibility of fraud in this area. It is for this reason that the Commission on securities and exchange Commission (SEC) has decided to proceed with the action. The measures taken by the regulator can affect dozens of cryptocurrency platforms, and primarily on ICO.

Despite the fact that while the SEC led by Chairman Jay Clayton (Jay Clayton) took action against nine cases of fraud with cryptocurrencies, there is information that the Commission is actively reviewing another dozen companies. If this is indeed the case, and 2018 could be the year the SEC taking action against the huge amount of fraudulent projects.

SEC Chairman J. Clayton supports the position of the critics, comparing the virtual currency with the «Tulip mania» and «bubble».

Former SEC Chairman Harvey pitt (Harvey Pitt) said:

«I would say that the industry comes a day of reckoning. And I believe that this is caused by a long-standing concern about the fact that for some activities it is necessary to apply measures that protect investors from fraud».

The decentralized nature of cryptocurrencies has become for regulators in a nightmare. However, because digital currencies are considered to be securities, the SEC may apply the measures for unauthorized activity.

One of the main objectives of the regulator is to hold accountable the fraudulent ICO, aimed at retail investors.

Overall, this year promises to be to the Commission very busy. The SEC plans to look fraudulent ICO, they are also going to check the list of investment funds of Bitcoin (Bitcoin ETF).

This decision followed after the SEC voiced concern about the protection of retail investors. On the other hand, large companies such as CBOE, JPMorgan Chase has supported the development of the ETF.

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