The market for digital currencies has taken off faster than regulatory agencies could keep pace. With favored currencies like Bitcoin trading at a record high of $4,700 as of Aug. 29 and a robust international market emerging, these agencies are making moves to regulate initial coin offerings (ICOs), the way by which cryptocurrency ventures raise funds.
One method gaining steam is to regulate some ICOs under existing securities law. On July 25, the U.S. Securities and Exchange Commission (SEC) issued guidance stating that federal securities laws apply to ICOs, while Singapore quickly followed suit, deciding it will regulate ICOs under securities law. On Aug. 24, Canada made its move, with the Canadian Securities Exchange Administrators (CSA) announcing that securities laws may apply to ICOs.
