SEC is Rocking the Cradle, Going Easy, Cutting Deals for Unregulated Crypto Projects Who Cooperate


The U. S. Securities and Exchange Commission (SEC) is known to be out for companies violating the securities laws with unregulated Initial Coin Offerings (ICOs) for a long time now.

However, a new report from Fortune shows that the company may be ready to “go easy” on the companies who are willing to be cooperative.

According to the article, the SEC does not allow companies which have emitted tokens that do not pass in the Howey test (which tests tokens to see if they are securities) to operate, however, some companies got a slap on the wrist after they cooperated.

For instance, the CEO of Airfox, Victor Santos, has affirmed that his company raised $15 million USD with an ICO in 2017. When the SEC got him, he had to pay a $250,000 USD fine and give the money back to the investors with interest.

Santos got burned by not being compliant, so he asked other investors to either move to a country like Switzerland, which has a more open regulation or to make peace with the SEC because the results would be even worse if he was not compliant with them after his company got caught.

Another company which was pardoned and did not even had to pay a fine was Gladius, which got the slap on the wrist because it was the first company to actually go to the SEC to talk instead of run away from it. The CEO Max Niebulski had to give all the money back to the investors, though.

The CEO did complain that the regulation created by the SEC is deeply outdated. For instance, it does not recognize how the market and the blockchain technology work. If you lose your keys, for example, you will lose your assets. The SEC does not allow that, but the technology simply does not work the way the SEC wants.

The SEC May Forgive Transgressors, But Is The SEC Even Right?

One issue that simply cannot be forgotten is that the SEC may preach all it wants about regulation, but this does not change the fact that the U. S. is simply lacking in regulation right now. There is no excuse for not having a better framework in more than two years since the discussion started.

Because of this, it is hard to blame the unregulated and non-compliant companies for what they did if there is simply no acceptable framework being used in the industry at the moment.

The SEC has to work more in creating a comprehensive regulation and less in curbing out all the innovators who are being punished for not having enough clarity on how the legislation works.

https://bitcoinexchangeguide.com/bitcoin-bch-ethereum-and-xrp-price-prediction-todays-top-crypto-technical-analysis/

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