June 18, 2024

SEC updates ICO regulation guide

SEC updates ICO regulation guide

On February 10, the US Securities and Exchange Commission (SEC) updated its guidelinesconducting an ICO, which the regulator wrote about on Twitter. A special section has been created on the regulator’s website that lists five aspects of ICOs, as well as a separate section for investors.

Despite the fact that the content has existed since March last year, the SEC decided to attract attention to it on social networks only this weekend.

The guide also refers to the risks associated with investing in this sector and encourages everyone to conduct their own research before parting with their capital.

“Companies and individuals are increasinglyare considering initial coin offerings (ICOs) as a way to raise capital or participate in investment opportunities,” – the manual says, – “While these digital assets and the technology behind them can represent an innovative and efficient tool for conducting financial transactions, they also increase the risk of fraud and manipulation as the markets for these assets are less regulated than traditional capital markets.”

Last week, SEC Chairman Jay Clayton spoke about the benefits of ICOs, he also emphasized investors' need for protection.

The ICO industry currently accounts for a share ofof their previous size in terms of market capitalization and most tokens are selling at a lower price after the ICO, causing some investors to suffer losses of over 90%.

In December, Arthur Hayes, CEO of Hong Kong's BitMEX cryptocurrency trading platform, said he expects the ICO market to revive by 2020.