US Department of Justice and FEC Take Aim at ICO Crypto Token Projects
Rod Rosenstein, the US Deputy Attorney General spoke at Interpol’s 87th General Assembly and there, he stated that international cooperation on cryptocurrency regulation is necessary. He mentioned that regulators should:
“Work together to make clear that the rule of law can reach the entire blockchain.” And added that it is imperative to cooperate to prevent cryptocurrencies from being “abused by criminals, terrorist financers or sanctions evaders.”
He also specifically touched upon initial coin offerings, stating that
“Fraudsters use the lure of coin offerings and the promise of new currencies to bilk unsuspecting investors, promote scams and engage in market manipulation.”
In addition to Rosenstein’s comments, another regulatory body, the U.S. Federal Election Commission, released a draft advisory discussing campaign donation through cryptocurrency mining. The draft noted that such donations are “permissible.” So believe that the regulator release the advisory after Osianetwork LLC released a proposal questioning whether it was legitimate for individuals to support political committees by devoting computing power to currency mining.
The commission continued that the donations do not “fall within the volunteer internet activities exemption and would result in contributions from both the individuals and Osianetwork to the participating political committees.” The FEC has not come out with a conclusion concerning the issue, but it scheduled to hold a vote on the matter on December 19.
Alabama’s Securities Commission litigator Greg Bordenkircher estimates that his state accounts for “about 20 percent of all the active cease-and-desists” in the United States. His state’s commission recently issued nine such orders to companies advertising fraudulent cryptocurrency products and that the commission is reviewing 20 to 22 other like-operations.
He also discussed that regulators must take a more active role in crypto regulation and as of yet, they have been doing a “great job.”