Gensler will likely be replacing Jay Clayton, who famously slowed down the ICO market during his tenure at the SEC. Will Gensler issue new clarity?
An initial coin offering, or ICO, is a controversial fundraising method for launching blockchain and cryptocurrency networks that involves the sale and distribution of a new crypto asset in exchange for other tokens, commonly Bitcoin (BTC) and Ether (ETH).
During the “ICO mania” of 2017 to 2018, projects collectively raised billions of dollars in capital, largely through nonaccredited investors.
This funding method has since lost most of its legitimacy, both inside and outside the industry. Many ICOs were clearly frauds or, at best, operating in regulatory gray areas. Over the past few years, regulatory agencies such as the United States Securities and Exchange Commission,or SEC, have brought legal action to past and present ICOs, slowly creating legal precedent and guidelines for future ventures.
While the ICO is now a precarious fundraising method for projects and investors alike, it did showcase a powerful use case of blockchain in permissionless fundraising at incredible scale. Over time, the launch methods of cryptocurrency networks will become more sophisticated, safe and, perhaps, regulatorily sound.
The celebrity was commissioned to record a promotional video for cryptocurrency in which she forecast new all-time price highs for Bitcoin and Ether.6704
The defunct firm is not the first to run aground due to failure to abide by U.S. securities laws.5005
The crypto industry is ending 2020 on a high note, while major social media platforms face a phalanx of lawmakers and lawsuits.5690
The Tron Foundation has filed a motion to dismiss a lawsuit from plaintiffs alleging securities violations with its $70 million 2017 ICO.8676
Robert Farkas will face the lightest felony sentence possible for his role in Centra Tech's 2017 ICO.41440
Another ICO case comes to a close.10734
ICOs are revolutionary for business, though the fear of being scammed keeps investors at a distance.16461
FinHub will have new independence and responsibilities, reporting directly to the SEC’s chairman.11298
The latest in securities law and crypto is not a revolution, but it is a step forward.5080
New, small-scale research from Xangle takes a look at investors’ reflections on their initial coin offering investments between 2017 and fall 2020.8544
The SEC is seeking a default judgment against three companies and four individuals for their roles in an allegedly fraudulent ICO that duped $9 million from 500 investors.5432
The settlement with the SEC came after the three were charged in September for their participation in “unregistered and fraudulent” ICOs.8099
The SEC summarized its efforts on combating crypto misconduct as its chairman is set to step down by the end of this year.5066
Numerous on-chain indicators suggest Ethereum price is on the verge of another 2017-style bull run.32222