Including ICO oversight SEC announces making of “Cyber Unit” with broad powers

Today US SEC (Securities and Exchange Commission) issues a press release about their creation of a dedicates “Cyber Unit”. Among other things, this unit will keep up some oversight over digital currencies.

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Broad authority

The SEC states:

The Cyber Unit will focus the Enforcement Division’s considerable cyber-related proficiency on targeting cyber related misconduct, like:

  • Hacking to obtain material nonpublic information
  • Misconduct perpetrated using the dark web
  • Market manipulation schemes involving false information spread through electronic and social media
  • Cyber-related threats to trading platforms and other critical market infrastructure
  • Intrusions into retail brokerage accounts
  • Violations involving distributed ledger technology and initial coin offerings

Significantly, Cyber Unit will have authority if all the above points fall under its purview. The last point is the most relevant to the cryptocurrency markets. The SEC officially taking on the role of policing both ICOs and the “distributed ledger technology” sector.

ICO regulation is no surprise

In fact, the Ethereum’s “THEDAO” project is a security offering. However, it’s no surprise the SEC considering a rather practical method in regards to regulating ICOs. The ICO is trending had been unparalleled, raise over $1.5 bln in 2017. Most of these ICOs are either absolute cons or are the result of some imprecise ideas in the head of few would be entrepreneurs.

Also Read: ICO is set to launch new cryptocurrency donation system: TrueDonate

BitcoinMarkets subreddit have expressed their pleasure at the SEC’s deceptive plan to get tough on ICOs. User stated:

“I dislike any regulatory oversight. Period. Though I’m pleasantly surprised at the SEC’s chosen course of action here. They might even manage to deter a blatant exit scammer/fraudster or two from preying on idiots”.

Other areas

The stimulating point includes in SEC announcement states that SEC will be watching out for pump and dump schemes runs out through “electronic and social media”. Subsequently, for digital currency users who carry out illegal activities on the Darkweb.

Balanced approach

Moreover, SEC is considering a balance approach to digital currencies. Therefore, that many ICOs promise “tokens” that sounds great deal like “shares”. Unsurprisingly, the SEC would be interested in potential securities violations from that area. Likewise, oversight over “distributed ledger technology” desecration could give the SEC more power to tack down and indict alleged scammers like Josh Garza.

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Sara K

Sara is steadily working on cryptocurrency evaluations, news, and fluctuations in digital currency prices. She is guest author associated with many cryptocurrencies admin and contributes as an active guide to readers about recent updates on virtual currencies.

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