Share this article
US Lawmakers Ask SEC to Clarify ICO Regulations
Members of the U.S. House of Representatives are asking SEC chair Jay Clayton to provide clarity on when token sales are classified as securities.
By Nikhilesh De
Updated Sep 13, 2021, 8:25 a.m. Published Sep 28, 2018, 4:55 p.m.
Make us preferred on Google
A group of U.S. lawmakers are asking Securities and Exchange Commission (SEC) chairman Jay Clayton to clarify when initial coin offerings (ICOs) are considered securities sales.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
, Representatives Ted Budd, Warren Davidson, Tom Emmer and Darren Soto, along with 11 co-signers, request that Clayton clarify how it is approaching token sales, saying that "current uncertainty surrounding the treatment of offers and sales of digital tokens is hindering innovation in the United States and will ultimately drive business elsewhere."
The letter continues, saying:
"We believe the SEC could do more to clarify its position. Additionally, we are concerned about the use of enforcement actions alone to clarify policy and believe that formal guidance may be an appropriate approach to clearing up legal uncertainties which are causing the environment for the development of innovative technologies in the United States to be unnecessarily fraught."
As such, the letter continues, the lawmakers are asking the SEC to clarify when token sales should be classified as "investment contracts," whether a token sold as a security can later become a non-security and what tools are available for the "SEC to offer more concrete guidance to innovators."
The letter does not provide a timeline, noting that "such guidance will, reasonably, take time, caution and deep consideration." As such, the letter says the questions are aimed at providing formal guidance in the long-term.
Friday's letter comes just days after Davidson hosted a forum in Washington, D.C. asking leaders in the cryptocurrency space to express any grievances they had with regulations in the U.S.
During the forum, multiple representatives from blockchain startups, cryptocurrency exchanges and venture capital funds emphasized the need for clarity around token sales.
While the SEC has, to date, focused on enforcement actions against malicious actors, CoinList general counsel Georgia Quinn noted that these actions have not provided a clear explanation of what is allowable within the U.S.
This lack of clarity has pushed businesses to leave the nation outright, said Joyce Lai from ConsenSys.
U.S. Congress image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Cathie Wood’s ARK Invest files for two crypto index ETFs tied to CoinDesk 20
One proposed fund will attempt to exactly mimic the CoinDesk 20, but the other would track the index, excluding bitcoin.
What to know:
- ARK Invest has filed with U.S. regulators to launch two cryptocurrency ETFs tracking the CoinDesk 20 index.
- One proposed fund would track the CoinDesk 20, which provides exposure to major tokens, including bitcoin, ether, solana, XRP, and cardano. The other would track the same index, but exclude bitcoin, by pairing long index futures with short bitcoin futures.
- The funds, which would list on NYSE Arca if approved, aim to offer diversified crypto exposure without direct token custody and follow similar, still-unapproved crypto index ETF proposals from WisdomTree and ProShares.
Top Stories
