SEC Enforcement Director: ICO Fraud Requires 'Thoughtful Approach'

[CryptoLD]

The SEC's new cyber unit appears to be stepping up its rhetoric on ICOs.

Speaking at the Securities Enforcement Forum on Thursday, SEC Division of Enforcement co-director Stephanie Avakian took the opportunity to give a broad overview of the unit's mission, once again emphasizing that token sales, the process by which startups use custom cryptocurrencies for fundraising, would be a focus.

The cyber unit, first announced late last month, has said it will target "misconduct perpetrated using the dark web," particularly where cryptocurrencies like bitcoin are used.

As such, Avakian said that the cyber unit was created to consolidate the regulatory body's expertise on cybercrime, and include a focus on blockchain technology, particularly initial coin offerings.

While blockchain technology can be used to raise funds legitimately, it can also be abused, she said, noting that "like many legitimate ways of raising capital, the popular appeal of virtual currency and blockchain technology can be an attractive vehicle for fraudulent conduct."

Referring to a previous SEC report which said digital tokens would be considered the way securities are under U.S. law, she ultimately said blockchain needs a "consistent, thoughtful approach."

She said:

    "We think that creating a permanent structure for the consideration of these [ICOs] within the Cyber Unit will ensure continued focus on protecting both investors and market integrity in this space."

Source : https://www.coindesk.com/sec-enforcement-director-ico-fraud-requires-thoughtful-approach/

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[bstewart]

Meh. blah blah blah. Sound nice until they do they same thing that was done to the stock market...

Want to invest in an ICO (or IPO)? Well, you gotta have at least a quarter of a million dollars first.

You know, because regulations protect the little guy.

Or something.

The best way to not be scammed by an ICO is to not invest in trash ICOs. They are generally easy to spot. No-name devs, shitty site, generic ideas that have already been done 100 times, etc.

[CrypticGambit]

The SEC's new cyber unit appears to be stepping up its rhetoric on ICOs.

Speaking at the Securities Enforcement Forum on Thursday, SEC Division of Enforcement co-director Stephanie Avakian took the opportunity to give a broad overview of the unit's mission, once again emphasizing that token sales, the process by which startups use custom cryptocurrencies for fundraising, would be a focus.

The cyber unit, first announced late last month, has said it will target "misconduct perpetrated using the dark web," particularly where cryptocurrencies like bitcoin are used.

As such, Avakian said that the cyber unit was created to consolidate the regulatory body's expertise on cybercrime, and include a focus on blockchain technology, particularly initial coin offerings.

While blockchain technology can be used to raise funds legitimately, it can also be abused, she said, noting that "like many legitimate ways of raising capital, the popular appeal of virtual currency and blockchain technology can be an attractive vehicle for fraudulent conduct."

Referring to a previous SEC report which said digital tokens would be considered the way securities are under U.S. law, she ultimately said blockchain needs a "consistent, thoughtful approach."

She said:

    "We think that creating a permanent structure for the consideration of these [ICOs] within the Cyber Unit will ensure continued focus on protecting both investors and market integrity in this space."

Source : https://www.coindesk.com/sec-enforcement-director-ico-fraud-requires-thoughtful-approach/

Again SEC is trying to mess with the crypto. I don't like it. It may be bad for crypto because some people still think that bitcoin is used by hackers and criminals. If they start to look at the icos and do some arrests, it will be bad for ICOs. Some of the icos are not scams. How to spot a ico that is not a scam?

-The team is doing interviews
-they are backed by some real companies
-they have a working protorype
-they have known advisors

If you find icos with those attributes you will never be scammed.

[Youghoor]

But they are right, maybe those are bad words to call bitcoin because they are saying that only criminals and bad people are using bitcoin and cryptocurrencies, and you all know that this is not true, because we are no criminals.
That is why i dont agree with this people, but ico's need to be regulated, they all are a mess, they are trying to create a new way to make start-ups and raise some millions by an easy way.
Ico's are a mess, i dont know why people is still joining them.

[Febo]

The SEC's new cyber unit appears to be stepping up its rhetoric on ICOs.

Speaking at the Securities Enforcement Forum on Thursday, SEC Division of Enforcement co-director Stephanie Avakian took the opportunity to give a broad overview of the unit's mission, once again emphasizing that token sales, the process by which startups use custom cryptocurrencies for fundraising, would be a focus.

The cyber unit, first announced late last month, has said it will target "misconduct perpetrated using the dark web," particularly where cryptocurrencies like bitcoin are used.

As such, Avakian said that the cyber unit was created to consolidate the regulatory body's expertise on cybercrime, and include a focus on blockchain technology, particularly initial coin offerings.

While blockchain technology can be used to raise funds legitimately, it can also be abused, she said, noting that "like many legitimate ways of raising capital, the popular appeal of virtual currency and blockchain technology can be an attractive vehicle for fraudulent conduct."

Referring to a previous SEC report which said digital tokens would be considered the way securities are under U.S. law, she ultimately said blockchain needs a "consistent, thoughtful approach."

She said:

    "We think that creating a permanent structure for the consideration of these [ICOs] within the Cyber Unit will ensure continued focus on protecting both investors and market integrity in this space."

Source : https://www.coindesk.com/sec-enforcement-director-ico-fraud-requires-thoughtful-approach/

I am surprise that USA and China with so huge budged that they can afford did not react faster. Smaller countries will just follow them with in some cases few years delay.   

ICO bubble will sooner or latter explode. So as value of ETH. Only thing that will be left will be 1Gb+ ETH blckchain..