The US Securities and Exchange Commission (SEC) has been working on clear guidance to clarify when securities rules may apply to crypto token sales — to Initial Coin Offerings (ICOs) — as token offerings do not always resemble traditional securities offerings.
ICOs have been, indeed, considered as a way to raise capital or to participate in investment opportunities — however, involving significant risk of fraud and manipulation due to little or non-existent regulation, when compared to conventional markets.
Now, the US regulator website has listed some aspects around ICOs, putting in a nutshell the entity’s perspective on the matter — and shared a section for investors and professionals of the crypto market, all under the form of a clear “user guide”.
This initiative comes amid ongoing efforts to formalize the sector as whole — nevertheless, at a time when the ICO ecosystem has been reduced to a fraction of its former dimension in terms of market capitalization.
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