Connect with us


After Bitcoin [BTC] ETF silver lining, SEC puts forth circular on ICOs

Akash Anand



After Bitcoin [BTC] ETF silver lining, SEC puts forth circular on ICOs
Source: Unsplash

The Securities and Exchange Commission [SEC] of the United States of America has been a major factor in the acceptance or denial of cryptocurrencies in the country. The body has intervened in several developments and updates, citing regulations and laws that will be a key component in pushing cryptocurrencies such as Bitcoin [BTC] into the mainstream realm.

In the latest report published by the SEC, the regulatory body talked about Initial Coin Offerings [ICOs], the rules and procedures behind it as well as the main issue of legitimacy, one of the most recurring topics in the field of cryptocurrencies. The report starts by stating:

“Companies and individuals are increasingly considering initial coin offerings (ICOs) as a way to raise capital or participate in investment opportunities. While these digital assets and the technology behind them may present a new and efficient means for carrying out financial transactions, they also bring an increased risk of fraud and manipulation because the markets for these assets are less regulated than traditional capital markets.”

In the report, the SEC has also given a detailed list of the five things that a user needs to know about ICOs. They have stated that ICOs can be security offerings and can fall under the SEC’s jurisdiction of enforcing federal securities laws. The SEC also added:

“ICOs that are securities most likely need to be registered with the SEC or fall under an exemption to registration.”

The clause is important because of the SEC’s tussle with the Bitcoin ETF, which were pitched by the Winklevoss brothers as well as the VanEck Bitcoin ETF. The VanEck Bitcoin ETF was also in the news recently when they stated that they withdrew the ETF application because they “didn’t want to slip through the cracks”.

The firm has claimed that this decision was triggered because of the US government shutdown. The SEC’s latest release also claims that tokens sold in ICOs can be called many things. To elucidate:

“ICOs, or more specifically tokens, can be called a variety of names, but merely calling a token a “utility” token or structuring it to provide some utility does not prevent the token from being a security.”

The governing body has further commented on the security risks that come along with the ICOs. There has been a clear mention of the fraudulent nature of some investments while there are others which are honest investment opportunities. According to the SEC:

“They may also present substantial risks for loss or manipulation, including through hacking, with little recourse for victims after-the-fact.”

Subscribe to AMBCrypto’s Newsletter

Follow us on Telegram | Twitter | Facebook

Engineering graduate,crypto head and Arsenal fan. Is fascinated by technology and all its marvels. Strictly against pineapple on pizza.


John McAfee says he will reveal Nakamoto’s identity, Coinbase expands to 11 countries, and more





John McAfee says he will reveal Nakamoto's identity, Coinbase expands to 11 countries, and more
Source: Unsplash

Daily Crypto News – April 18

1. John McAfee on Satoshi Nakamoto: The Founder of McAfee Associates stated that he would narrow down on the identity of Satoshi Nakamoto until he reveals Satoshi himself, otherwise he would reveal his identity to the crypto community. He also spoke about how he knows about Satoshi, to read about it, click here!

2. Coinbase expands its services to more countries: The leading exchange platform announced that it expanding its services to 11 more countries, which includes India, South Korea, and New Zealand. People in these countries can avail services provided on, Coinbase Pro and its app on iOS and Android.

To know more about the countries Coinbase has expanded to, click here!

3. Craig Wright says the crypto-community want to silence him: Craig Wright, the self-proclaimed Satoshi Nakamoto, stated that the majority of the community was against him as they “desire to silence” him because they see someone who would bring an end to scams and pumps and dumps.

He also spoke about the next steps he would be taking in terms of the legal action concerning his defamation case. To read about it, click here!

4. Binance “marks the birth of a new genesis block”: The largest cryptocurrency exchange in terms of trade volume announced the launch of its Decentralized Exchange, and also stated that the mainnet swap would take place on 23 April 2019.

To read more about Binance DEX, click here!

Subscribe to AMBCrypto’s Newsletter

Continue Reading