SEC Statement on Cryptocurrencies and Initial Coin Offerings

SEC Chairman Jay Clayton provides a general view of cryptocurrency and ICO markets. He addresses potential concerns of investors and market professionals such as the fact that there is substantially less investor protection than in traditional securities markets (with correspondingly greater opportunities for fraud and manipulation). Includes sample questions for investors such as “How, when, and at what cost can I sell my investment? For example, do I have a right to give the token or coin back to the company or to receive a refund? Can I resell the coin or token, and if so, are there any limitations on my ability to resell?” and “If a blockchain is used, is the blockchain open and public? Has the code been published, and has there been an independent cybersecurity audit?”