SEC: IEOs can be as risky as ICOs
The US Securities and Exchange Commission (SEC) believes that many initial public offerings (IEOs) are held in violation of federal securities laws. The agency warned investors about the high risks associated with participation in such campaigns.
The SEC emphasized that unregulated exchanges cannot provide the proper level of protection for investors.
In order to conduct IEO in the United States, the marketplace must register itself as a national stock exchange or alternative trading system (ATS) if the coin offered on it is a security. Also, such exchanges may need a broker-dealer license.
The SEC warned that they did not issue a single permit to conduct IEO. Investors were encouraged to monitor the availability of necessary licenses if an international platform offers coins to US residents.
SEC to Continue Evaluate Cryptos in 2020
Digital assets, along with other innovative financial technologies, will be a priority for control in 2020. This is stated in the annual report of the Legal Compliance Review Department (OCIE) of the US Securities and Exchange Commission (SEC).
The regulator intends to monitor the offer, sale, trade, and management of digital assets, as well as their compliance with the definition of a security and existing regulatory standards.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.