Hinman's commentary on the status of cryptocurrencies and the Howey Test was particularly critical to regulation surrounding ICOs.
The Securities and Exchange Commission, or SEC, is an independent agency within the United States government tasked with regulating the securities markets in a way that protects the public from fraud, maintains fair and efficient markets, and facilitates healthy capital formation in the U.S. and its jurisdictions.
The emergence of cryptocurrencies with the advent of Bitcoin (BTC) directly challenged the hegemonic order of the legacy financial system and quickly provoked ire and distrust from various regulatory authorities.
The SEC, however, remained largely quiet on securities law applicability to cryptocurrencies and fundraising events until July 2017 when the agency published their report on the DAO project, concluding that the sale of DAO tokens was in fact an unregistered securities offering and therefore subject to securities laws. This was published in the context of the initial coin offering, or ICO, craze of 2017 to2018.
Since then, the SEC has slowly brought cases against various projects such as halting the launch of the highly anticipated Telegram blockchain network, TON, in October 2019, thus setting legal precedent for all current and future blockchain ventures.
The SEC is one of the most powerful regulatory agencies in the world, as most countries often wait to see how the U.S. regulates certain industries before implementing their own legislation and regulatory frameworks.
The crypto industry records another major acquisition in 2020.6195
The outlook is grim for the Canadian messaging app as it loses $5 million over its initial coin offering for Kin tokens.5133
Participants of a $5.6 million token sale did not expect a return on investment, the NAC Foundation argued.5205
An upcoming digital assets exchange has vowed to work with regulators around the world to deliver a cutting-edge experience to retail and institutional investors.4517
The SEC Commissioner said the recent legal action taken against BitMEX shows the need for the international industry to take AML regulations seriously4596
Lawyers argued the complaint was “based on a man in Wisconsin using an exchange in Singapore to purchase tokens issued by a Swiss entity.”3265
“Crypto Mom” Hester Peirce admits the SEC can be slow in giving guidance, but she sees the regulator becoming more open to change.10989
Multi-platinum record producer buys Bitcoin, is welcomed into the club by Pomp.4698
The cybersecurity millionaire and former presidential candidate sees new additions to his legal woes.15162
SEC v. Kik doesn’t have to be game-over for Kik or SAFTs. In fact, the decision is perhaps more favorable than the SEC v. Telegram order.7961
Regulators and service providers are collaborating as never before to address systemic vulnerabilities of the crypto industry.6589
Digital asset markets are subject to various regulations worldwide, but which are the most suitable for the crypto space at the moment?4881
The SEC's investigation into the crypto trading firm, which paid fines of $300,000 in July, apparently continues.7388
A judge has ruled that the $100 million ICO conducted by the Canadian messaging platform Kik in 2017 violated federal securities laws.7870