SEC Sternly Warns Cryptocurrency Exchanges Listing ICOs

The top US securities regulator has signaled its intent to crack down on cryptocurrency exchanges for alleged violations of federal laws governing securities trading. In a statement dated March 7, the Securities and Exchange Commission (SEC) wrote that cryptocurrency exchanges that list ICO tokens the agency deems to be securities are operating “potentially unlawful” trading platforms. While most token issuers have sought to skirt securities regulations by categorizing their tokens as “utility tokens,” SEC Chairman Jay Clayton has repeatedly said that the majority of ICOs he has observed constitute securities offerings. As the SEC’s statement indicates, the “security” classification implicates not just companies that distribute their tokens through ICOs but also exchanges that list them on their trading platforms.

Reference: https://www.ccn.com/potentially-unlawful-sec-issues-stark-warning-to-exchanges-that-list-icos/

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