CBOE Global Markets President: ICO Market to Face a 'Regulatory Reckoning'
20 Juin 2018 - 12:47PM
ADVFN Crypto NewsWire
CBOE Global Markets President Chris
Concannon has claimed that the initial coin offering (ICO) market could soon face a
two-fold regulatory “reckoning,” Business Insider reports June
19.
According to Concannon, the reckoning will come in two
waves. First, the U.S. Securities and Exchange
Commission (SEC) will classify ICOs as unregistered securities
and the holdings of investors would be “rendered valueless.” This
would subsequently cause the second wave, as a slew of class-action
lawsuits are filed against the companies behind ICO projects:
“The reckoning will come in two waves. First, the SEC
will go after ICO market participants. Then, class-action lawsuits
against the teams behind ICO projects will surge.”
Concannon said that ICO investors “should lay awake at
night” worrying about the uncertainty in the ICO market. Concannon
explained that if someone offered an unregistered coin, they would
technically have issued an unregistered security, and in the eyes
of the law would be considered an “unregistered underwriter.”
"If you sold someone an unregistered security you are
liable to them if they decide to take them to court."
Whether the SEC would retroactively prosecute ICO
projects remains uncertain. Professor of financial regulation at
Cornell University Robert Hockett said the SEC would likely only
take action in extenuating circumstances:
"I don't think it is the case that people involved in
the business are going to be prosecuted against as if they have
been violating the law. But there is a little bit of a room for
exception with something particularly egregious."
In 2017, the ICO market broke funding records, raising a
fiat equivalent of $4 billion. Using data from
from Token Report, Business Insider estimates that ICOs will raise
$7 billion in 2018.
Financial regulators have repeatedly urged the public to
comply with existing laws, and have taken action against those
who have failed to do so. In a large-scale probe into suspicious
crypto investment products dubbed “Operation Cryptosweep,” U.S. and Canadian regulators from 40 jurisdictions have opened
up to 70 investigations.
Earlier today, founder of McAfee Antivirus Software and crypto
enthusiast John McAfee announced that he will stop
cooperating with ICOs and promoting ICO projects due to supposed
threats from the SEC. McAfee, who revealed his second run for
president in early June, claimed that he charges $105,000 per tweet to
promote cryptocurrency projects and products.
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