For months, the SEC, the Commodity Futures Trading Commission (CFTC), and other regulators worldwide have been looking into the cryptocurrency market. Regulators are concerned about the rising theft of bitcoin and other cryptocurrencies, and other fraudulent schemes.
SEC is aggressively monitoring the cryptocurrency market, ICOs
In December, SEC Chairman Jay Clayton warned investors participating in ICOs and provided a due diligence checklist. At the time, he also informed investors that no ICOs have been registered to the SEC. The agency hasn’t approved for listing and trading any exchange-traded products holding cryptocurrencies.
Chairman Clayton also stated that he instructed the Commission’s Division of Enforcement to “continue to police” the cryptocurrency market particularly ICOs.
He ordered the division to recommend enforcement actions against companies conducting ICOs that violate federal securities laws. The SEC Chairman noted some companies promoting ICOs with structures involving the offer and sale of securities. Therefore, the companies need to follow federal securities laws.
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