United States Securities and Exchange Commission (SEC) chairman Jay Clayton said the regulatory body was taking a “measured” stand on “promising” blockchain technology.
Speaking before the U.S. Senate Committee on Banking, Housing and Urban Affairs, Clayton explained that the SEC has dedicated “a significant amount of attention and resources on digital assets.”
Overall, I believe we have taken a measured, yet proactive regulatory approach that both fosters innovation and capital formation while protecting our investors and our markets.
Clayton drew attention to the SEC’s work going after issuers of digital assets “engaging in fraud” and violating “registration provisions” of federal securities laws. In particular, he highlighted the crackdown against the unlawful promotion of initial coin offerings (ICOs).
While the SEC has been busy regulating the industry of crypto in 2019, some of their actions have been met with controversy. In October, the regulatory body issued an “emergency action” against Telegram, halting its sale of the GRAM token. The SEC also brought a lawsuit against the messaging platform Kik for its $100 million ICO.
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