SEC Official Criticizes State of ICO Industry, Open to Regulated Future
United States Securities and Exchange Commission (SEC) commissioner, Robert Jackson, has expressed his belief that initial coin offerings (ICOs) will be legitimized under existing securities legislation. Despite the optimistic outlook, the commissioner has criticized the current state of the ICO industry.
SEC Commissioner Expects ICOs Have Legitimate Future
In an interview with CNBC, SEC commissioner, Robert Jackson, recently expressed cautious optimism regarding ICOs – predicting that initial coin offerings will be conformed to the rubric of existing securities regulations in future.
“Down the road, I think we will be thinking about ways to make those investments work consistent with our securities laws,” Robert Jackson said.
Commissioner Claims ICO Market Currently Resembles Wild West
Despite the commissioner’s optimism surrounding the future prospects of the ICO industry, Robert Jackson offered a highly critical appraisal of the current state of initial coin offerings.
Mr. Jackson stated “Investors are having a hard time telling the difference between investments and fraud […] “If you want to know what our markets would look like with no securities regulation, what it would look like if the SEC didn’t do its job? The answer is the ICO market.”
Mr. Jackson also stated that the cryptocurrency sphere had yielded a number of “troubling developments,” adding “Right now we are focused on protecting investors who are getting hurt in this market.”
SEC Official Discusses Cryptocurrencies During Recent Congressional Hearing
Mr. Jackson’s remarks come less than a week after a U.S. house of representatives hearing entitled “Oversight of the SEC’s Division of Corporation Finance” saw William Hinman, the director of the SEC’s Division of Corporation Finance, claim that the SEC is seeking to develop a “balanced” framework for the regulation of cryptocurrencies.
“We are striving for a balanced approach, and one that ensures capital formation while maintaining a strong focus on investor protection,” Mr. Hinman said.
In response to a question from Committee member Bill Huizenga regarding whether ICOs could potentially comprise a solution to the recent decline in initial public offerings (IPOs) launched in America, Mr. Hinman stated: “in theory, there is a time when a coin may achieve a decentralized utility in the marketplace.”
Committee member Brad Sherman objected the suggestion that ICOs may comprise an appropriate alternative to IPOs, claiming that an IPO “provides jobs in the real economy,” whereas ICOs do “the opposite.”
Do you think that the ICO industry spells the demise of IPOs? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
At news.Bitcoin.com all comments containing links are automatically held up for moderation in the Disqus system. That means an editor has to take a look at the comment to approve it. This is due to the many, repetitive, spam and scam links people post under our articles. We do not censor any comment content based on politics or personal opinions. So, please be patient. Your comment will be published.
The post SEC Official Criticizes State of ICO Industry, Open to Regulated Future appeared first on Bitcoin News.
You may be interested
Bitcoin Price Falls Below $6000 to Hit New Low for 2018Editor - June 23, 2018
[ad_1] Bitcoin Price Falls Below $6000 to Hit New Low for 2018 CoindeskBitcoin's Price Drops Below $6000 to Hit 2018 Low CoinDeskFull…
Shopin ICO-Syndicate Hacks Shows Danger Of TrustEditor - June 22, 2018
[ad_1] Large scale thefts usually involve an exchange or a bug in a smart contract. While individual hacks are common,…
Why this VC fintech firm didn’t invest in Coinbase and RippleEditor - June 22, 2018
[ad_1] Nyca Partners, the third most active venture capital firm in fintech globally, is invested in enterprise blockchain efforts, such…