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The Wall Street Journal published an article with some interesting information; in a recent speech to a select group of attorneys in New York, Walter Joseph “Jay” Clayton III, US Securities and Exchange (SEC) Chairman, said: “I have yet to see an ICO that doesn’t have a sufficient number of hallmarks of a security”.

Clayton’s words were delivered to the 49th Annual Institute on Securities Regulation in New York City on 8 November 2017. This three-day gathering is a good opportunity for any LLC. It also expensive (2,495 USD per ticket) but the networking is supposed to be worth it.

“When you depart from the bitcoin or the ethereum, and you get into the tokens, the hallmarks become pretty clear” Chair Clayton said.

The officer is a long-time attorney who has represented Deutsche Bank and UBS.

When speaking about ICOs, he commented “a distinct lack of information about many online platforms that list and trade virtual coins or tokens offered and sold.” Then he added: “Investors often do not appreciate that ICO insiders and management have access to immediate liquidity, as do larger investors, who may purchase tokens at favorable prices.”

“Trading of tokens on these platforms is susceptible to price manipulation and other fraudulent trading practices” said the Chairman.

As if all his words weren’t enough, he ended:

“…the Commission will continue to seek clarity for investors on how tokens are listed on these exchanges and the standards for listing; how tokens are valued; and what protections are in place for market integrity and investor protection.”

Trade now