Notably, Giancarlo added that the two agencies are in "regular communication" with each other regarding both digital currencies and ICOs, highlighting the degree of inter-agency cooperation within the USA government on issues around cryptocurrencies.
The startup planned what's known as an initial coin offering, an arrangement that is drawing increased scrutiny from the feds. Munchee, a food review App based on Blockchain, agreed to refund all investors without accepting nor denying the allegation.
In addition, main street investors should note that "if a promoter guarantees returns, if an opportunity sounds too good to be true, or if you are pressured to act quickly, please exercise extreme caution and be aware of the risk that your investment may be lost".
Although the SEC reported that investors could get a ROI in MUN tokens, this would make it a security that requires SEC registration. He recommends that investors ask if a particular offering is structured to comply with securities laws, and if not, how that could affect the value of the investment. "Many of these assertions appear to elevate form over substance, " Clayton countered. Securities and derivatives regulators "are in regular communication" on the issues raised by ICOs and crypto currencies generally, Giancarlo says.
The SEC Chair's Cryptocurrency Warning: 5 Things to Know
"Merely calling a token a "utility" token or structuring it to provide some utility does not prevent the token from being a security. As the SEC has said in the DAO Report of Investigation, a token can be a security based on the long-standing facts and circumstances test that includes assessing whether investors' profits are to be derived from the managerial and entrepreneurial efforts of others", the SEC clarified. "On this and other points where the application of expertise and judgment is expected, I believe that gatekeepers and others, including securities lawyers, accountants, and consultants, need to focus on their responsibilities", he added.
Earlier this month, the two exchanges cleared a regulatory hurdle with the CFTC after "extensive discussions", which included making significant changes to their proposalson how to reduce potential market manipulation.
"While these digital currencies may not pose major concerns at their current levels of use, more serious financial stability issues may result if they achieve wide scale usage", he said during a speech at a Federal Reserve Bank of Cleveland conference.
Airline Crew Says They Saw North Korean Test Missile Re-Enter Atmosphere
The flights, one from San Francisco and the other from Los Angeles , were both headed for Incheon, the main airport serving Seoul, South Korea.