The Securities and Exchange Commission (SEC) has sent out a significant number of subpoenas and information requests probing companies and advisers that work in the cryptocurrency or technology companies reports The Wall Street Journal.
The US Securities and Exchange regulatory demands for the structure of ICO’s token sale and pre-sale, which doesn’t under the same thorough investigation of public offerings. The expanded pressure takes after past requests from the SEC, which has proposed that numerous token sales and ICOs might damage securities!
While the big financial firms have the procedure and resources to deal with these sort of requests in the matter of course, but it can be the big issue for small start-ups.
As per Lawyer – The roughly 25-page document was “hyper-detailed,” asking for “every bit of communication around the token launch.”
He added – “For any normal person trying to respond, it would be hellish.”
The action comes after warnings issued from SEC to study and analyze closely the ICO structures and Enforcement action on cryptocurrencies. They had previously taken action on cryptocurrency scams and what is believed to be unregistered securities termed as initial coin offerings (ICOs) — a fundraising method for cryptocurrency-based projects.
While US federal agencies grow more suspicious of crypto business, at the state level, legislation is being introduced and passed that would relax certain controls on cryptocurrencies.
The state of Wyoming is taking a particular laissez-faire approach to cryptocurrency regulation, passing a law that completely exempts tokens from securities regulations if they meet a short list of requirements. Wyoming also introduced a bill earlier this month that, if passed, would exempt cryptocurrencies from property taxes, per its current status under US tax law.