Clayton: ICOs Should Be Regulate Like Securities Offerings

    2018/02/07 15:09 Angel lv Created with Sketch.
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Cointime (February 07) On Tuesday, Jay Clayton, Chairman of the Securities & Exchange Commission, and J, Christopher Giancarlo, Chairman of the Commodity Futures Trading Commission, testified before the United States Senate Committee on Banking, Housing, and Urban Affair about cryptocurrency. At the hearing, U.S. regulators and lawmakers fully expressed concerns about ICO’s conduct.


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Clayton said in the hearing, "I believe every ICO I’ve seen is a security."


He further added,

"Folks somehow got comfortable that his was new and it was okau and it was not a security, it was just some other way to raise money. I don't think the gatekeepers that we rely on to assist us in making sure our securities laws are followed have done their job."


He also made clear no ICO, past or future, had been subjected to SEC registration.


Elizabeth Warren, the Massachusetts Senators, then asked,

"I am understanding you that this is a violation of the law?"

"yes,"Clayton Answered. 


Elizabeth Warren is critical of the blockchain financing model, and her home state had sued ICO organizers in the past.


During the hearing, Sherrod Brown, Ohio Senator, asked

"How much of [the billions of dollars worth of cryptocurrency ICO raised last year] was raised in the U.S.?"


Clayton could not provide a direct answer.

"It's not clear. It's hard to get a number on that because this has been conducted on largely an unregulated basis. but I imagine, Senator, a significant enough portion that we should be paying attention."


Clayton pointed out, what’s important is that cryptocurrency industry is still proceeding with their activities even though they know they are not following SEC rules.


Giancarlo had a softer approach to the topic. He said the older generation owe it to this new generation to respect their enthusiasm about virtual currencies with a thoughtful and balanced response, not a dismissive one.


But Clayton concluded,

"I want to go back to separating ICOs and Cryptocurrencies. ICOS that are securities offerings, we should regulate them like we regulate securities offerings. End of Story."

    Adapted from: CoinTime Executive editor: Angel
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