Wealthman welcomes the SEC’s intention to increase the safety of investing in crypto-assets and ICO. For both investors and ICO founders, this trend is positive.

Wealthman welcomes the SEC’s intention to increase the safety of investing in crypto-assets and ICO. For both investors and ICO founders, this trend is positive.

Recently, there has been a huge growth in the crypto market, however, it also experienced many cases of scam.
Therefore, the SEC has filed a number of lawsuits in recent months against allegedly fraudulent initial coin offerings (ICOs). Previously, the SEC (Securities and Exchange Commission) used to examine only the particular cases of violation of the regulatory policies such as The DAO (sec.gov) or Munchee (sec.gov) in the effort to combat scams. The policies they follow now are the securities regulations formed back in the 1930s.

However, the hearing in the Senate entitled “Virtual Currencies: The Oversight Role of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission” on February, 6th made it clear that the SEC is to conduct an inspection of all ICOs that are held, registered in, or aim to attract funds from the USA.
As a result, the SEC is poised to constitute the set of strict laws. This will eliminate the obligation to adhere to scarce precedents, and introduce the cohesive guidelines for those intending an ICO. This step will foster other first-tier countries to create their own regulations of crypto- and blockchain-related enterprises. Once the SEC has new regulations finalized, the rest of the world will look up to them, at least until having their own in place.

Four stages for the SEC to achieve the goal are:
  • - Scrupulous investigation
  • - Show trials
  • - Lawmaking
  • - Implementation


So far the SEC has been making recommendations to alleged fraudsters to stop their activities and return accumulated funds to investors (as it was with Munchee). The recent statements and the general trend show that the new methods of the SEC will be severe and uncompromising.

Our experts believe that the entire cycle will take at least 2 years.

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