SEC is Looking into Blockchain Companies

  • Contributor

    The SEC Chairman, Jay Clayton, is making it clear that their organization is keeping a close eye on many fresh and Publicly Listed companies that are trying to "pivot" into Blockchain technology.

    Market professionals, especially gatekeepers, need to act responsibly and hold themselves to high standards. To be blunt, from what I have seen recently, particularly in the initial coin offering ("ICO") space, they can do better.
    Our securities laws – and 80 plus years of practice – assume that securities lawyers, accountants, underwriters, and dealers will act responsibly. It is expected that they will bring expertise, judgment, and a healthy dose of skepticism to their work. Said another way, even when the issue presented is narrow, market professionals are relied upon to bring knowledge of the broad legal framework, accounting rules, and the markets to bear.

    What that means in reality is hard to gauge, but one could read between the lines. For the most part, a lot of it has to do with ICO's that are posing outside of SEC regulation - products that are posing as IPO's but consider themselves outside regulation.

    In many other cases, it has to do with trying to promote products that have no track record, and are trying to skirt SEC regulation by posing outside of Securities' rules and regulation. Especially those with no tangible product.

    The thousands of ICO products (many with only a Whitepaper) within the last year or two are now coming to bear regulator's crosshairs. One can only imagine how that will come to pass. It could mean fresh ICO's, established Publicly Traded companies, or both.

    World Currency
    The Economist (1988) (attr: Sankol)