Due to the high level of uncertainty that has engulfed the initial coin offerings, investors, traders and operators alike are skeptical about the authentication of the different projects. It is in this vein that the United States Stock Exchange Commission was encouraged to regulate it by the United States Chamber of Commerce, representative of Large industries and investments and representative of small and medium scale enterprises and other major stakeholders.
The chamber is hinged on its “Eight Fintech principles.” The agency urged regulatory bodies to support novel capital raising method. Just like its done in the ICOs. Though, the chamber did not mention that stakeholders should fight for “tailored oversight and strong customer and investor protection” while doing so.
The proliferation of the crypto space has been a thing of worry for the chamber as loads and loads of platforms are springing out of nowhere, claiming to offer one blockchain service or another. In order to protect the naive customer who may want to fall for the tricks of fraudsters, the chamber sought to call for the regulations of the cryptocurrency market, to know the good and the ugly.
The opinion of the chamber cannot be thrown out of the door, as they are the biggest and largest organization in the world. They also have an oversight duty, which is to serve as a bridge between technology and DC.
“We urge the SEC to give more guidance on the treatment of tokens and the initial coin offering, to indicate whether it is secured to the companies so that we can have more predictability and certainty in the Marketplace.”
They also reiterated on their website that regulatory bodies must start issuing no-action letters. “An individual or entity who’s not certain whether a particular product, service or action would constitute a violation of the federal security laws may request a ‘no action’ letter from the SEC staff.”
The organization requested the SEC to consider and distribute the letters. The same thing was asked of the Commodity Future Trading Commission with a statement “for cryptocurrency to be the future, we urge, the commodity future trading commission (CFTC) to provide more guidance and broadly consider expedited no-action letters.”
The Consumer Financial Protection Bureau was also charged to distribute a no-action letter.
The agency’s main objective is the regulation of offerings and the provision of consumer financial product or services. The report states that “The Bureau of consumer financial protection should adopt a robust no-action letter and advisory opinion process that gives innovators the opportunity to receive regulatory certainty that needs to be successful.”
ICOs have been in the news of late for all the wrong reasons, the fraudulent activities that engulfed the project raged like wildfire as investors have become increasingly scared to invest in it, but the regulations might help stabilize it and bring more stability into it and redeem the confidence of the investors.