SEC Chairman Affirms ICO Token Sales Are A Good Way To Raise Capital If Rules Are Properly Followed

SEC Chairman Affirms That ICOS Can Be A Good Way To Raise Capital If Rules Are Properly Followed

Some people who follow the crypto market may find this strange, but the chairman of the U. S. Securities and Exchange Commission (SEC), has actually talked enthusiastically about Initial Coin Offerings (ICOs) recently.

Despite the view of the SEC that tends to be somewhat skewed against ICOs, Jay Clayton, the SEC’s chairman, has affirmed that ICOs do have advantages and can, in fact, be used as ways to raise capital. According to him, though, the major point that has to be observed is that the proper regulation has to be followed in order for the process to work.

The information was taken from a speech that the chairman of the SEC made recently about the agenda of the institution for 2019. He believes that, if you follow the Securities Law, you should not necessarily have problems using ICOs as ways to get money to fund your venture.

Clayton affirmed that the novelty and the technology of the ICOs do not change what he called “fundamental point”:

“If you offer a security, you must follow securities laws. According to him, he spent a lot of time understanding ICOs and the blockchain technology and that the market, as it is now, has considerably less protection for the investor.”

Because of this, traditional equities and fixed income markets have far greater opportunities and less fraud and manipulation than ICOs do.

Crypto Market Manipulation

One of the main concerns of the SEC chairman is that there is a lot of price manipulation in the crypto market. He has recently affirmed that the current bear market prices are the real prices of crypto and that they may not be free from volatility but that these low prices are free of market manipulation, which was very high in 2017.

He deems market manipulation as something that is very harmful to the market and the investors. Because of this, he believes that the SEC has to work to prevent any kind of market manipulation.

Coincidentally, two U. S. Congressmen have recently introduced two bipartisan bills which are aimed at preventing the manipulation of the crypto market. These bills ask some regulators to provide a roadmap to create better protection for investors and boost the role of the country in the ICO and crypto sphere.

Jay Clayton is open to innovation and even to ICOs, it seems, but he is considered against the idea of how people are irresponsible and even illegally using the crypto market as a way to profit from uncautious investors.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Gabriel Machado
Brazilian journalist who is interested in the future of the financial world. Has a special interest in the blockchain technology and the global financial markets. Covers economic and technology news with a focus on the fintech industry and has been writing about the cryptocurrency market since the start of 2017.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: DCG State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders...

Non-Custodial Bitcoin Exchange, Hodl Hodl, Launches Lending Service Without KYC

Hodl Hodl, a non-custodial Bitcoin exchange, is launching a KYC-free lending product for its customers. The exchange claims that its lending product would be...

Total Value Locked in Harvest Finance Surpasses $1 Billion, Up 366,200% Since September

Decentralized platform Harvest Finance that provides users a way to farm assets for the highest yields now has more than a billion dollars in...

Strong Institutional Demand for Bitcoin, CME Becomes Second Largest BTC Futures Market

Bitcoin's price made a big shift this week as the bulls gained control of the market and pushed it past $13,000. A similar shift has...

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today