The US Securities and Exchange Commission (SEC) is increasingly seeing "flagrant violations" of law by cryptocurrency market participants. This was stated by head of the department Jay Clayton, reports Bloomberg Law .
Speaking at a financial technology conference in Washington, Clayton said the crypto community has made tangible progress in understanding how securities laws can be applied to digital assets.
According to him, during the boom of initial offers of coins of 2017-2018, there were widespread violations of securities laws. Many crypto projects believed that they could raise funds only by posting a description of their idea and not disclosing information about the participants in their campaigns.
“I don’t think that any of them studied the law, visited our site ,” added Clayton.
He also said that the SEC is not against ICOs and other cryptocurrency fundraising mechanisms. However, such projects should be registered with the agency or receive permission to conduct companies in an exceptional manner.
“You cannot distribute funds among a wide range of retail investors if you have not taken the steps prescribed by law ,” the head of the regulator emphasized.
Recall that in September, Jay Clayton said that bitcoin needs more regulation for listing on large exchanges.
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