Share this article
SEC Enforcement Director: ICO Fraud Requires 'Thoughtful Approach'
SEC Division of Enforcement co-director Stephanie Avakian said the agency's new cyber unit would look at how blockchain technology and ICOs are used.
By Nikhilesh De
Updated Sep 13, 2021, 7:05 a.m. Published Oct 27, 2017, 7:30 p.m.
Make us preferred on Google
The SEC's new cyber unit appears to be stepping up its rhetoric on ICOs.
Speaking at the Securities Enforcement Forum on Thursday, SEC Division of Enforcement co-director Stephanie Avakian took the opportunity to give a broad overview of the unit's mission, once again emphasizing that token sales, the process by which startups use custom cryptocurrencies for fundraising, would be a focus.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The cyber unit, first announced late last month, has said it will target "misconduct perpetrated using the dark web," particularly where cryptocurrencies like bitcoin are used.
As such, Avakian said that the cyber unit was created to consolidate the regulatory body's expertise on cybercrime, and include a focus on blockchain technology, particularly initial coin offerings.
While blockchain technology can be used to raise funds legitimately, it can also be abused, she said, noting that "like many legitimate ways of raising capital, the popular appeal of virtual currency and blockchain technology can be an attractive vehicle for fraudulent conduct."
Referring to a previous SEC report which said digital tokens would be considered the way securities are under U.S. law, she ultimately said blockchain needs a "consistent, thoughtful approach."
She said:
"We think that creating a permanent structure for the consideration of these [ICOs] within the Cyber Unit will ensure continued focus on protecting both investors and market integrity in this space."
Image via Woodrow Wilson Center YouTube
Higit pang Para sa Iyo
‘Bitcoin to zero’ searches spike in the U.S., but the bottom signal is mixed
Google Trends data shows the term hit a record high in the U.S. this month, though global interest has fallen since peaking in August.
Ano ang dapat malaman:
- U.S. searches for “bitcoin zero” on Google hit a record high in February as BTC slid toward $60,000 after hitting a peak in October.
- In the rest of the world, searches for the term peaked in August, suggesting fear is concentrated in the U.S. rather than worldwide.
- Similar U.S. search spikes in 2021 and 2022 coincided with local bottoms.
- Because Google Trends measures relative interest on a 0-to-100 scale amid a much larger bitcoin user base today, the latest U.S. spike signals elevated retail anxiety, but does not reliably guarantee a clean contrarian reversal.
Top Stories
