A Shot in the Arm
A judge in a US federal court has ruled that the country’s securities laws cover ICOs. The ruling is a boost for SEC ICO regulation probe authority, since the ruling came in the course of a likely fraudulent Initial Coin Offering (ICO).
ICOs have become widely popular since 2017. Many blockchain-crypto start-ups have raised millions of dollars using this route. The popularity continued unabated in 2018, as a Business Insider article stated. The article quotes a joint report from PwC Strategy and the Crypto Valley Association, which shows that blockchain-crypto entrepreneurs raised US$13.7 billion from ICOs in the first five months of 2018.
ICOs have democratized investment; however, they have operated outside regulations. To do this, they claimed that their tokens only offer access to utilities. The SEC isn’t accepting this argument since they use the Howey test to determine if an investment instrument
... read more at: https://blocktelegraph.io/will-crypto-regulation-be-asset-to-eu/