US SEC Updates Website; Still Offers No Substantial New Information for the ICO Community | News ICORating
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US SEC Updates Website; Still Offers No Substantial New Information for the ICO Community

US SEC Updates Website; Still Offers No Substantial New Information for the ICO Community

The Securities and Exchange Commission fired a tweet notifying the public of the agency’s guide on initial coin offerings. An FAQ is now included in their ICO-dedicated webpage that aims to explain the topic to the general public, to investors and market professionals: mainly, very common ideas. The very update happened about one week ago. We have waited for additional releases, but as of now, nothing new has been added.

‘Companies and individuals are increasingly considering initial coin offerings (ICOs)... to raise capital or participate in investment opportunities. While these digital assets and the technology behind them may present a new and efficient means for carrying out financial transactions, they also bring increased risk of fraud and manipulation...’

– Securities and Exchange Commission

In their guide, the SEC encapsulated facts about ICOs without including technical details. An ICO, according to the regulatory agency, ‘can be securities offerings’, hence federal securities laws are applicable. A token with ‘some utility’, or utility tokens, does not mean it cannot be deemed a security. Registration of ICOs considered as securities is a must.

The commission also encourages gatekeepers, lawyers, accountants, and other market professionals in the industry to protect investors by knowing the ins and outs of SEC registration, offering process, and disclosure requirements.


The SEC emphasizes caution against extant risks of participating in an ICO. Investors are called to due diligence before putting in money. Questions an investor should ask include, ‘Is the offering legal and is the person offering this product licensed to do so?’

And since it is inherent for ICOs to span intercontinental, the money from the investments may traverse abroad, investors are prodded to understand how digital assets are traded on exchanges.

‘Many platforms for trading digital assets refer to themselves as ‘exchanges,’ which can give the misimpression to investors that they are regulated…’

– Securities and Exchange Commission

Another aspect an investor should be wary of is the ‘too good to be true’ investment offering. The agency calls for the utmost prudence as there is risk that investments might be irretrievable.

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