SEC says the priority for now is to protect customers who “are getting hurt in this market.” It says that it will be looking at aligning crypto investments with securities law, which does not mean a total ban or more regulation.
The U.S. Securities and Exchange Commission is reiterating that it does not wish to ban ICOs and remains open to a legal avenue about cryptocurrency investments. SEC Commissioner Robert Jackson told CNBC’s “Squawk Box” on Monday. However, that they will, in future, seek to make crypto investments “work consistent” with securities laws.
This could point at a possible classification of digital currencies as securities altogether. Although it could as well mean some or all will be so categorizing. Recently, there was a call that Bitcoin do not entirely fit classification as securities given their structure. SEC Chairman Jay Clayton says in February that every ICO is to be seen as a security despite claims that some are just utility tokens.
Jackson said that his comment did not suggest more regulation or an outright ban. He says they are currently focusing on protecting customers “who are getting hurt in this market”. He said that, without securities regulation, other markets would look like the currently craze-trodden cryptocurrency ICO industry.
Already, many ICO and crypto scams reported since the craze for crypto shot up — especially last and start of this year — will be evidence for regulators. Already, regulators stopped a handful of projects with claims of being fraud and subpoenas this year. Since, there are warnings of pump-and-dump schemes in cryptocurrencies.