20 Jun 2018
CBOE President Chris Concannon predicts US ICO regulatory clampdown, stating that everything will start with the US Securities and Exchange Commission (SEC) classifying ICOs as unregulated securities.
20 June, AtoZ Markets – The President of CBOE Global Markets has made a public statement. He has claimed that the Initial Coin Offering (ICO) market might soon face a two-fold regulatory “reckoning.”
According to Chris Concannon, the ICO market regulatory reckoning will emerge in two steps. Firstly, the key financial securities markets regulator of the US, the US Securities and Exchange Commission (SEC) will categorize ICOs as unregulated securities. In this case, the investors’ holdings would be “rendered valueless.” This also would consequently cause the second step to kick in.
The second wave would include a flow of class-action lawsuits to be filed against the firms operating ICO projects. Mr. Concannon has been quoted as saying:
“The reckoning will come in two waves. First, the SEC will go after ICO market participants. Then, class-action lawsuits against the teams behind ICO projects will surge.”
Concannon has also added that ICO investors “should lay awake at night” being concerned about the turmoil in the ICO market. He has explained that in case someone has offered an unregulated coin for sale, they would have issued an unregistered security. Therefore, this would constitute an “unregistered underwriter” as per the law rules. Mr. Concannon has added:
"If you sold someone an unregistered security you are liable to them if they decide to take them to court."
Aside from remarks of Chris Concannon, the official SEC decision still remains unclear. Robert Hockett, the professor of financial regulation at Cornell University, believes the SEC would take action in certain cases:
"I don't think it is the case that people involved in the business are going to be prosecuted against as if they have been violating the law. But there is a little bit of a room for the exception with something particularly egregious."
Back in 2017, the ICO market has reportedly hit funding records. The market has raised a fiat equivalent of $4 billion.
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