In a speech published last week that focused on reviewing the SEC’s progress in 2018 and also discussing the agenda for the coming year, Jay Clayton the chairman of the SEC addressed some of the advantages of raising capital using ICOs.
He claimed that the new form of crowdfunding is an effective way for entrepreneurs to raise capital. However, where appropriate, security rules will have to be adhered to.
SEC Will Continue To Focus On Cryptocurrencies And The Blockchain
Clayton noted that the unique technological nature of ICOs doesn’t change the fundamental point that if a security is being offered, the agency’s securities laws have to be followed.
He added that the SEC and its staff have already spent a significant amount of time focusing on cryptocurrencies and the blockchain. It’s a trend he expects will continue in 2019.
According to him, there have been “a number of concerns have been raised regarding the digital assets and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in the traditional equities and fixed income markets, with correspondingly greater opportunities for fraud and manipulation.”
It’s not the first time the chairman of the SEC has addressed the issue of crypto market manipulation. In a recent CoinDesk Consensus: Invest conference he said that retail crypto investors should rely on the prices they are seeing.
However, they should be free from manipulation and not necessarily free from volatility.
In the speech, Clayton also discussed the recently launched Strategic Hub for innovation and Financial Technology (FinHub). The platform is meant to help fintech startups especially those working with crypto assets to navigate the legal implications of their products.
The chairman said:
“As the FinHub and our other activities demonstrate, our door remains open to those who seek to innovate and raise capital in accordance with the law,”
