US SEC Presents Its Vision For ICO Organization
The US Securities and Exchange Commission (SEC) presented its vision of the initial coin offering (ICO) in the publication on the official website.
The authors of the material listed five aspects that must be considered when conducting an ICO and participating in it. Besides, separate sections have been added for investors and market professionals.
Since March 2018, the Commission has drawn attention to the problems of ICOs. To date, this material is the most understandable among those the SEC has ever published. There is no technical terminology, and explanations are given in simple language.
Five aspects summarize the whole previously provided information — a token issued during an ICO can be considered as security and, therefore, must be registered with the Commission, regardless of how the issuer positions it.
The SEC reminds about the risks for those investors who plan to participate in an ICO and warns about the need for a detailed study of the project before investing in it.
New digital assets and their underlying technology can be an effective means of cash transactions, but at the same time the risks associated with fraud and manipulation are increasing. This financial market is regulated to a lesser extent than the traditional one, according to the material.
As previously reported, the US Congress presented a bill that defines digital assets and allows avoiding excessive regulation of the market.