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.