I think this isn't good on the decentralized part of cryptocurrency. Yes, there are lots of ICOs not on the system but they are from other countries. I hope SEC can see their authority about some jurisdiction on some places. Maybe on US soil, but they must understand that their position has limited powers to impose a threat to cryptocurrency.
Maybe this is not good, but it is at least some real step to reduce the number sponge on the market and increase efficiency for investors. A small but pleasant step, I fully support them.
SEC is trying to ensure that people won't lose that much money on scams. It's a good thing to do and I guess it's okay that SEC in the US authority through which US-based ICOs have to go through in general. However, SEC is about securities and while many ICOs are indeed offering security tokens, not all of them are. If we are talking about an ICO that offers utility tokens that will be used on some platform or something, I don't see why these projects have to go through SEC hell. They probably should be regulated, but in a different way, because they represent something different.