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   654

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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Bittrex to List LOOM

LOOM is the token of the American startup Loom Network, which launches decentralized applications
18 July 2018   178

Popular cryptocurrency exchange Bittrex listed Loom Network token LOOM. 

As the team of the exchange said, trading with the crypto currency will begin in the near future. On the background of this news, LOOM showed a price jump fo 14%.

LOOM Price Chart
LOOM Price Chart

LOOM is the token of the American startup Loom Network, which is launching decentralized applications.

In January, Bittrex tightened the criteria for listing new tokens. Now, developers need to provide technical information about the token itself, as well as the data of at least one team member. At the moment, the exchange has 290 digital coins.