The SEC released an investigative report, that says many new digital coins appear to be securities. Which makes them subject to laws requiring disclosures and other protections for investors.
Over the last couple of months many Companies have raised millions of dollars issuing their own tokens. The unregulated market has turned untested entrepreneurs into instant millionaires, allowing them to raise money without jumping through the usual hurdles set up by venture capital firms and securities regulators.
The SEC doesn’t want a new black market to flourish outside the purview of regulators, because unsophisticated investors could get fleeced.
The SEC says it simply wants to “caution the industry and market participants and it doesn't mean that the market for new digital coins will be shut down.
The SEC did not release a specific definition of which ICOs are securities, noting it will look at them on a case-by-case basis. But it’s highly likely that anyone looking to raise money will have to increase their disclosures (and their legal teams) at the very least.
Read the full article here:
http://www.barrons.com/articles/the-sec-may-have-just-popped-the-digital-coin-bubble-1501021510
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STOPThanks for keeping us informed! These regulations could turn out to be a good thing - think about OneCoin.
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http://www.barrons.com/articles/the-sec-may-have-just-popped-the-digital-coin-bubble-1501021510