Crypto Companies Must Follow US Securities Rules When Applicable, SEC Warns
Cryptovest
Published Nov 19, 2018 08:50AM ET
Updated Nov 19, 2018 10:01AM ET
Crypto Companies Must Follow US Securities Rules When Applicable, SEC Warns
The US Securities and Exchange Commission (SEC) has sounded an alarm over the application of federal securities law to cryptocurrency-related business. In a statement issued on Friday, the regulator warned initial coin offering (ICO)-issuers, investment funds, exchanges, brokers and dealers that their activity, not their technology or branding of the company, is the key when deciding whether those firms come under securities regulation.
The SEC published the advice after making settlements with AirToken and Paragon Coin ICOs. ICO-issuers must register before starting their offerings so that investors can rely on protection measures and can make an informed decision, the SEC said.
“These two matters [AirToken and Paragon Coin] demonstrate that there is a path to compliance with the federal securities laws going forward, even whe...
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