The Securities and Exchange Commission (SEC) seems to be moving easily to international organizations that cooperate, pay a fine, and return pooled funds to investors.
A series of adjustments
The Securities and Exchange Commission (SEC) has reached a settlement with the Initial Currency Offer (ICO) projects that accept the Commission’s decision to violate securities regulations.
Fortune notes that the SEC has reached settlement deals with some ICO projects in the United States that offer currency that is considered a securities by the Commission. According to the report, some projects have been launched lightly, without the need to pay a fine.
Speaking to Fortune, Victor Santos of Airfox, one of the ICO projects fined by the SEC Committee.
As previously reported by Bitcoinist, the SEC imposed a fine on Airfox about $ 250,000 and instructed the company to return investors’ funds with interest. The committee also advised the company to follow the necessary legal procedures to submit an offer of securities to the public.
Airfox is one of many projects run away from the SEC as soon as the Commission begins to highlight ICO in 2017. Apart from executives, public figures promoting ICO operations also have competition with the securities regulator.
Back in November 2018, the Securities and Exchange Commission imposed a fine on DJ Khalid and Void Mayweather for a total of $ 800,000 in addition to banning participation in promotional activities for two or three years. Both celebrities participated in a deceptive campaign.
At the same time, there are calls within the United States for a more nuanced approach to regulating digital currencies outside the rules.
The Chairman of the Committee, Jay Clayton, has consistently maintained that the Commission believes that most ICO operations are securities even if the principal agents say that these are the currency of services. Some commentators believe that the Securities and Exchange Commission (SEC) needs to renew its laws to take into account the unique nature of the Biloxin-based assets.
The Committee’s classification of many of the ICO’s primary currencies as securities remains a major sticking point for some stakeholders. Many believe that the Howey test is not enough to classify many of the primary currencies, which may fall under the category of service currencies or payment currencies or digital assets, to name a few.
At the same time, initial currency sales in ICO operations are in the midst of a significant drop as numbers continue to fall. According to Bitcoinist, sales of such operations fell by 90% compared to the first quarter of 2018.