SEC Chief to Believe That Not All ICOs Are Fraud

Jay Clayton talked with Princeton students on the topic "Cryptocurrency and Initial Coin Offerings"
06 April 2018   856

Speaking at an event at Princeton University, the chairman of the US Securities and Exchange Commission, Jay Clayton, in response to a question whether all ICOs are fraud, said that it was "absolutely not".

According to Clayton, the measures his agency is taking in recent months should help the development of crypto industry.

Is the approach taken in Washington by the SEC adversely affecting distributed ledger technology in other areas? My quick answer is that my hope is that it's actually helping - because this technology is being used for fraud and to the extent that it's being used for fraud, history shows that government comes down harshly on that technology later.

Jay Clayton

Chief, SEC

One of the problems that regulators see in this area, according to Clayton, is to attempt to classify the ICO tokens as utility tokens, which, according to the idea of ​​the organizers of such campaigns, should free them from the obligation to comply with the requirements of the securities law. At the same time, in fact most of these tokens have the characteristics of securities.

If a startup "offering something that depends on the efforts of others, it should be regulated as a security" Clayton said.

If I have a laundry token for washing my clothes, that's not a security. But if I have a set of 10 laundry tokens and the laundromats are to be developed and those are offered to me as something I can use for the future and I'm buying them because I can sell them to next year's incoming class, that's a security. What we find in the regulatory world [is that] the use of a laundry token evolves over time. The use can evolve toward or away from a security. We found that the areas of application of laundry tokens can change over time, both in the direction of acquiring the qualities of a security, and in the opposite direction. 

Jay Clayton

Chief, SEC

Nations may experiment with sovereign cryptocurrencies, while startups might develop different kinds applications with the underlying technology, he added.

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Tezos Bug to Slow Down the Network in 20 Times

The issue looks fixed now and Tezos network works in the standard transmission mode
25 September 2018   162

In the main network of the Tezos block project, a bug was discovered one week after its official launch. According to, on August 24, due to the vulnerability, the release time of the blocks increased from 1 to 20 minutes.

The user of the service for hosting IT projects GitLab under the nickname "Jérémie" reported on block freezing for 45 minutes. Later in Riot chat he learned that developers are aware of the problem and they are working on its solution.

Bug between the baker and the node. The two communicate over json but the json serializer incorrectly handled some control characters. Immediate fix was to patch the serializer. Medium term fix is that the baker and node really should communicate using the binary RPCs instead.

murbard at Reddit

Soon after the discovery of the bug, one of the developers posted an urgent fix at GitHub, which was proposed to be installed by all the bakers. Currently the Tezos network operates in normal mode, and the units are released every minute.

As of September 25, 08:00 UTC network of Tezos worked in the standard transmission mode - 1 block per 1 minute