This statement goes much further than past statements/opinions. I have a feeling that the hammer is going to come down in the next couple months, and it won't be pretty. ICOs promoting securities to Americans and exchanges brokering sales of securities seem to be on the SEC's hit list. I found these statements particularly worrying:
Similarly, I also caution those who operate systems and platforms that effect or facilitate transactions in these products that they may be operating unregistered exchanges or broker-dealers that are in violation of the Securities Exchange Act of 1934.
This definitely applies to Bitfinex (who only booted US customers last month), Poloniex and Bittrex. And they go even further to suggest that even cryptocurrencies (and not just ICO tokens) may be securities as well:
Before launching a cryptocurrency or a product with its value tied to one or more cryptocurrencies, its promoters must either (1) be able to demonstrate that the currency or product is not a security or (2) comply with applicable registration and other requirements under our securities laws. Second, brokers, dealers and other market participants that allow for payments in cryptocurrencies, allow customers to purchase cryptocurrencies on margin, or otherwise use cryptocurrencies to facilitate securities transactions should exercise particular caution, including ensuring that their cryptocurrency activities are not undermining their anti-money laundering and know-your-customer obligations.[7] As I have stated previously, these market participants should treat payments and other transactions made in cryptocurrency as if cash were being handed from one party to the other.
That statement is particularly chilling with regard to brokers like 1Broker/1Fox and SimpleFX, exchanges like those above and Shapeshift/Changelly, and maybe even payment processors like Bitpay. It's going to be an interesting several months as regulators start nosing around.
