POWERED BY LAW.COM
 
Expert Opinion

SEC Directs Regulatory Fire at Initial Coin Offerings

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Jared L. Kopel Jared L. Kopel (Courtesy photo)

Amid the general deregulatory thrust of the Trump Administration, the Securities and Exchange Commission has launched a major regulatory initiative directed at initial coin offerings (ICOs), the fundraising devices that provide a digital “coin” or “token” to investors. SEC head Jay Clayton recently stated that he had instructed the SEC staff “to be on high alert” for ICOs that violated the federal securities laws. The SEC recently obtained a court order halting an ICO that claimed to have raised $600 million, alleging that it relied on false and misleading statements concerning its business operations. State and industry self-regulators have also signaled a crackdown on ICOs and cryptocurrencies. The regulatory effort enfolds two themes: ICOs must comply with the federal securities registration requirements and many ICOs are no more than old-fashioned frauds. Further, the form of a transaction cannot eclipse the economic substance and the manner in which an ICO is marketed is significant in determining whether it is a securities offering.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com

Recommended Stories

More from ALM

 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Privacy Policy

Privacy Policy / Terms of Service

Publications

Law Topics

Rankings

More

Law.com

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.