Speaking at the Fintech Week 2019 Blockchain Infrastructure Conference in Washington, Jay Clayton, Chairman of the US Securities and Exchange Commission (SEC), stated the number of companies that sell digital assets in violation of the law is gradually decreasing.
Specifically referring to “blatant violations” despite defining what it encompasses, the Chairman stated that the cryptocurrency community has been educating itself on the application of securities law to virtual currencies.
He recalled the ICO in 2017-2018 when the SEC had to close many dubious projects that offered unrealistic profits and tricked investors. Clayton said that the SEC ‘supports’ the use of coin offerings and other fundraising tools within the cryptocurrency ecosystem, so long as they are registered with the regulatory authorities and an ‘exemption’ is secured.
“You can’t have wide distribution to the retail public with trading and not have the protections of the Securities Act.”
The turning point in the recognition by the regulator of the crypto industry was the appointment of Clayton as chairman of the SEC in January 2017, when bitcoin grew to $ 15,000.