According to Yahoo Finance publication, SEC is actively studying the work of ICO-startups, as a result of which the activities of many companies are under the threat. Hundreds of project organizers returned funds to investors and paid fines. The portal together with Decrypt Media conducted a study in the industry. They found out that situation is much more serious than it might seem at first glance.
Journalists believe that many ICO-startups broke the laws about placement of securities. However, these companies are not scammers. All projects representatives sought to comply all necessary requirements of financial regulator. The main violation is participation non-accredited investors in fund-raising. Now many companies are in a difficult position. ICO-projects don’t understand, how to satisfy SEC requirements and can’t get advice on this matter from other industry participants.
The leaders of ICO-projects spoke about the situation on condition of anonymity, due to the regulator’s ban on disclosing information. They stressed that the main problem lies in the SEC. The financial regulator is trying to control the industry by the rules of working with stocks, bonds, ect.
It’s worth noting, that in early September, the SEC suspended trading with exchange traded notes (ETN) on Bitcoin and Ethereum. A month earlier, regulator rejected nine applications on Bitcoin ETF.