Lawmakers Ask SEC to Clarify ICO Regulations

US Lawmakers Ask SEC to Clarify ICO Regulations

A group of U.S. lawmakers are asking Securities and Exchange Commission (SEC) chairman Jay Clayton to describe if initial coin offerings (ICOs) are considered securities sales.

In the letter, Representatives Ted Budd, Warren Davidson, Tom Emmer and Darren Soto, along with 11 co-signers, ask that Clayton clarify how it’s approaching nominal sales, saying that”current uncertainty surrounding the treatment of offers and sales of digital tokens is hindering innovation in the USA and will drive business elsewhere.”

The correspondence continues, saying:

“We believe the SEC could do more to clarify its position. Additionally, we are concerned about the use of enforcement actions alone to clarify policy and believe that formal guidance may be an appropriate approach to clearing up legal uncertainties which are causing the environment for the development of innovative technologies in the United States to be unnecessarily fraught.”

Therefore, the letter continues, the lawmakers are asking the SEC to explain if token sales must be categorized as”investment contracts,” if a token marketed as a safety can become a non-security and what resources can be found for your”SEC to provide more concrete advice to innovators.”

The correspondence doesn’t provide a deadline, noting that”such advice will, fairly, take caution, time and profound consideration” Therefore, the letter states the questions are targeted at providing formal advice in the long term.

Friday’s letter comes only days after Davidson hosted a discussion in Washington, D.C. requesting leaders at the cryptocurrency room to state any grievances they had with regulations at the U.S.

Throughout the discussion, multiple agents from blockchain startups, cryptocurrency exchanges and venture capital funds highlighted the need for clarity about token sales.

While the SEC has, up to now, concentrated on enforcement activities against malicious celebrities, CoinList general counsel Georgia Quinn noted that those activities haven’t provided a clear explanation of what’s allowable within the U.S.

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