The SEC authority at the US seems persnickety about the initial coin offering (ICO) and its marketplace. Meanwhile, the chairman Jay Clayton is focusing on the primary potential on the fundraising procedure for fraudulent activity.
He keeps cheering blockchain which seems to give its exclusive potential benefitting investors along with the financial services industry. It might seem surprised that the SEC grants approval to nearly 300 ICO projects currently fundraising in 2018.
In fact, according to the market analysis research. The firm demonstrates that the American regulator shows a green light to almost 287 worth projects in 2018.
There were many loopholes of sorts that show their revelation in 2019. Rather than their products promotion to the public. An organization is announcing an ICO that is only providing accredited investors by the SEC. And that will grab its chance for product investment.
The term accredited investor refers to a person having a net worth of least $1 million or person maintaining an income worth $200,000 or more than this. The firms holding worth $5 million or added assets will also be able to show their investment as accredited investors.
While only providing an investment product specifically to accredited investors, the person needs to file a Form D with the SEC. They will have to get clearance from particular regulators and they need not adhere to the sizeable rules.
So, this specifies the current situation where various projects not only related to ICO projects but also cryptocurrency are working with the wrong means and intends to ruin the peace that blockchain is trying to bring in the economy.