Blockchain Business Ventures Monitored By US Regulator
Today there was an announcement by the chief of the US Securities and Exchange Commission. Jay Clayton pointed that there is a monitoring among public companies that are linked to Blockchain.
Recently, a big number of firms has announced about moving to Blockchain business ventures. This tendency has fueled the warnings from the US SEC and other regulators, including FINRA. This trend might be a basis for abuse by fraudsters.
SEC Head Jay Clayton has stated that his agency is investigating the issue. Special attention is dedicated to the subject of investor disclosures. He has stated:
“The SEC is looking closely at the disclosures of public companies that shift their business models to capitalize on the perceived promise of distributed ledger technology and whether the disclosures comply with the securities laws, particularly in the case of an offering.”
Earlier this month, the SEC has suspended trading of UBI Blockchain. During 2017 the firm has experienced a price spike, because of its cryptocurrency oriented branding. Currently, this firms stocks remains frozen.
Mr. Clayton also mentioned in his view those lawyers, who assist promoters in creating offers fro ICOs.
“I have instructed the SEC staff to be on high alert for approaches to ICOs that may be contrary to the spirit of our securities laws and the professional obligations of the U.S. securities bar.”