SEC Continues War Against ICOs

October 4, 2019

SEC Continues War Against ICOs With Retroactive Action Against Siacoin


The US Securities and Exchange Commission has declared war on initial coin offerings (ICOs) and the regulator has charged several businesses with allegations of violations on different securities laws. The penalties faced by the various firms charged by the regulator have differed substantially, and this has created some confusion as to what the regulator requires of businesses that conduct ICOs.

SEC’s first retroactive action and harsh penalties


In a move that has sent shockwaves across the crypto community, the SEC has handed down its first retroactive judgment on Nebulous Inc. over its conduct in its ICO which took place in 2014. Nebulous is the company that owns Siacoin (SC), a cryptocurrency that is used for cloud storage. The regulator has hit the firm with a $225,000 fine on top of a cease and desist order.

Siacoin’s ICO raised $120,000, and the firm behind it has been charged almost double the amount that was raised during the offering. The cease and desist order that has been given to Nebulous means that Siacoin is now officially considered a security by the regulator and it will be difficult for the crypto asset to avoid further violations of securities laws.

When another action that the SEC has taken against other firms that are accused of violating securities laws is considered, the judgment that Siacoin is facing is quite harsh. The regulator recently placed a $24 million fine on EOS, whose ICO raised close to $4 billion. The penalty imposed on EOS is less than 1% of the total raised during its ICO. Furthermore, there were no requirements imposed to register EOS as a security, and this raises more questions about the ruling against Siacoin.

How far back can the SEC reach?


Siacoin’s ICO was conducted in 2014, years before the SEC’s guidance on crypto-assets came into being. The regulator’s first guidelines on ICO’s were issued in July 2017. At that point, the regulatory body said that any crypto asset that will be offered to investors with the aim of gaining profits would be regarded as a security, and hence, these would be controlled by securities laws.

For ICOs that took place after these regulations were passed, it was quite clear that they would have to follow specific rules when they conduct their offerings. However, Siacoin’s case has created a precedent that has left several players in the crypto industry with many questions. What the Siacoin case tells us is that the SEC’s regulations about ICOs can be applied to offerings that took place before the laws themselves came into existence.

Before the SEC clearly stated its position on ICOs, there are several offerings of the sort that were conducted, and all these companies are at risk of being charged by the regulator. It also reveals the lengths that the regulatory authority is prepared to go to with regards to its fight against ICOs. If the judgment against Siacoin is a reflection of the SEC’s impending action against ICOs that were conducted even before its guidelines came into effect, several crypto businesses will soon face punishment from the regulator.

Author: Ali Raza for Crypto-Rating.com
Cryptocurrency: Siacoin
Share
Pin
Send
Share
Share

ICOs creating sell pressure on Ethereum
ICOs creating sell pressure on Ethereum

Ethereum has been experiencing a downward trend in its price, and analysts have presented many possible explanations regarding why the cryptocurrency is performing negatively...

Karatbars faces regulatory scrutiny
Karatbars faces regulatory scrutiny

Since cryptocurrencies came into existence, countless crypto-related projects have been launched, and these have run different kinds of token offerings. Initial coin offerings...

CoinMarketCap Reflects Higher Bitcoin Mean
CoinMarketCap Reflects Higher Bitcoin Mean

Bitcoin has been performing negatively over the last few weeks as the cryptocurrency entered a bearish run. The bearish run continued this weekend and Bitcoin saw its prices fall below...


Top 5 Sports Organizations Accepting Cryptocurrencies
Top 5 Sports Organizations Accepting Cryptocurrencies

Miami Dolphins is the NFL team that plays in the East division of the American Football Conference. This June, the team that currently occupies the last spot in the AFC East...

Energy Efficient Bitcoin Alternative
Energy Efficient Bitcoin Alternative

It is generally known that one of the major problems associated with Bitcoin mining and transaction handling is the astronomically high consumption of electricity and the unaffordably...

US House Candidate Accepts Cryptocurrency Donations
US House Candidate Accepts Cryptocurrency Donations

To paraphrase a famous saying, if the United States government officials don't go crypto, the crypto must go to US politics. And while...


Crypto Firms To Create Asset Classification System
Crypto Firms To Create Asset Classification System

The cryptocurrency industry, particularly in the United States, has been battling with regulators over the classification of tokens as securities. There has been a lack...

Best Cryptocurrency to Mine
Best Cryptocurrency to Mine

One of the most common questions in the crypto industry these days is whether or not crypto mining can still be profitable. As you may expect, the answer is not as black...

Top 10 upcoming ICOs

ICO Start End
1 Ledder Aug 01 Dec 31
2 BitWings Jun 03 Nov 30
3 Pbet Jun 18 Dec 15
4 UCBI Banking Oct 18 Jan 18
5 Cinemadrom Feb 03 Apr 30
6 GRAYLL Jun 03 Oct 27
7 Yachtco Aug 04 Feb 04
8 Monart Sep 01 Oct 31
9 GOVEARN Jun 23 Dec 31
10 Dexa Coin Oct 06 Oct 16
All ICOs

Top 10 Crypto Brokers

Rank Status Broker Reviews
1 FXTM information
2 HYCM information
3 FIBO Group information
4 HotForex information
5 XM information
6 OctaFX information
7 easyMarkets information
8 Bithoven information
9 LH Crypto information
10 USGFX information
All Crypto Brokers

Top 10 Cryptocurrencies

Currency Price, USD 24h
1 Bitcoin 8 353.681 0.05%
2 Ethereum 184.006 1.05%
3 XRP 0.288 4.72%
4 Tether 1.006 0.24%
5 Bitcoin Cash 226.649 0.33%
6 Litecoin 57.138 1.48%
7 EOS 3.157 1.82%
8 Binance Coin 18.300 3.5%
9 Bitcoin SV 87.644 -1.12%
10 Stellar 0.063 3.22%
All Crypto Currencies

Top 10 Crypto Exchanges

Exchange Volume, USD Reviews
BitMEX 1 722 889 865
FCoin 1 267 105 125
Bilaxy 1 029 527 573
Biki 1 005 198 434
Fatbtc 907 614 503
CoinEx 879 809 002
BW.com 865 183 146
LATOKEN 788 833 872
Bit-Z 755 702 288
CoinBene 751 286 327
All Crypto Exchanges