Operation Crypto-Sweep – The North American Securities Administrators Association (NASAA) just announced that they sent out 70 cease-and-desist letters to operations they believe to be scam crypto companies. The operation is being called ‘Operation Crypto-Sweep’ and it has first reached 40 jurisdictions in both Canada and the United States.
Joseph P. Borg, NASAA’s president, made a statement three days ago saying, “the actions announced today are just the tip of the iceberg.”
Since the beginning of May, the operations have resulted in 35 enforcement actions and the opening of 70 individual investigations. “Not every ICO or cryptocurrency-related investment is fraudulent, but we urge investors to approach any initial coin offering or cryptocurrency-related investment product with extreme caution,” Borg said.
Jay Clayton Pleased
Jay Clayton, Chairman of the U.S. Securities and Exchange Commission, has applauded his fellow regulators. The long-time crypto-skeptic isn’t one to hold back his opinion of cryptocurrency and more specifically, initial coin offerings.
Clayton said in his formal statement:
“The enforcement actions being announced by NASAA should be a strong warning to would-be fraudsters in this space that many sets of eyes are watching, and that regulators are coordinating on an international level to take strong actions to deter and stop fraud.”
The SEC chairman used the statement to make his stance crystal clear on initial coin offerings. Clayton feels if investors are offered and sold securities, whether, through the traditional route or ICOs, that state and federal laws apply. The laws for securities provide investors full and fair disclosure of material information about the venture being funded and the security.
Here We Go Again – Asset or Security?
Many within the cryptocurrency community view cryptocurrencies as assets, but that doesn’t seem to be the case for most higher-ups in government. In my opinion, if ICOs weren’t in the mix the SEC would keep its hands off, but that isn’t the case.
Unfortunately, regulators are only looking at the small percentage of fraud occurring in the space. Most Americans aren’t even allowed to participate in ICOs, as many companies have them blocked from entering them.
Still, the question remains. Are digital tokens assets or securities?
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