SEC Chairman Says ICOs Are Not All Fraudulent
SEC Chairman Jay Clayton on Thursday defended the agency’s recent crackdown on cryptocurrency, saying surveillance is part of the industry.
At a conference at Princeton University, Clayton also answered the question of whether ICOs were fraudulent. Clayton went on to explain the SEC’s measures to fight fraud will help the cryptocurrency industry, and that ICO are not fraudulent. The observations of the SEC’s highest ranking official may indicate a softening approach for ICOs.
Clayton opened the talk by telling the assembled students he believes that “distributed ledger technology has incredible promise for the financial industry.”
The SEC chairman went on to argue that the steps taken by the agency in recent months could actually help the industry mature overall.
He told attendees:
“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.”
Clayton continued: “I think if we don’t stop the fraudsters, there is a serious risk that the regulatory pendulum – the regulatory actions will be so severe that they will restrict the capacity of this new security.”
Clayton said these actions took place in the best interest of the industry. “I think there is a serious risk of regulatory oversight, regulatory measures should be more restrictive for the ability of this new security,” he told the audience.
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