SEC Chairman: Pay close attention to listed companies with blockchain as the center

nBankruptcy Review: Recently, the Securities and Exchange Commission chairman Jay Clayton at a meeting held in Washington, DC, said in a statement that the SEC is currently paying close attention to the listed company announced its business focus shifted to the blockchain trend has already begun to investigate in depth This issue, and will be specifically for investors to disclose the issues studied. In the meantime, Clayton criticized some lawyers who advised potential ICO organizers and said they have urged SEC staff to be highly alert to lawyers who violate the spirit of securities law and professional obligations.n
nTranslation: Clovern
The chairman of the Securities and Exchange Commission, Jay Clayton, said today that the securities market regulator is closely following the trend announced by listed companies to shift their focus to the blockchain.n
As CoinDesk reported earlier, in recent months, companies have announced the move to blockchain businesses, including a company that previously sold iced tea. While the announcements often lead to higher share prices for these companies, the trend itself has led to regulatory oversight and warnings from institutions such as the Financial Services Regulatory Agency (FINRA) that they believe this could be exploited by fraudsters.n
Earlier in the day, U.S. Securities and Exchange Commission Chairman Jay Clayton said in a statement issued by a meeting held in Washington, DC, that the SEC is currently investigating this issue in depth and will conduct research specifically on investor disclosures.n
Clayton said:n
n”The SEC is closely monitoring the disclosure of information on listed companies that shift their business model to the expected promises of distributed ledger technology and determine whether the disclosures are compliant with the securities laws, particularly in the case of securities.”n
nn”I do not think anyone would accept that a listed company does not have any meaningful track record of conducting a commercialized process of distributed ledger or blockchain technology but only (1) begins to engage in blockchain activities, (2 ) Change its name, such as ‘Blockchain XXX’, and (3) issue securities immediately without disclosing to the major investors enough information about these changes and the risks involved. “n
nEarlier this month, for example, the SEC immediately halted UBI Blockchain’s stock exchange, which changed its name last year and subsequently rose sharply. According to data provided by MarketWatch, the company’s stock is still in a frozen state.n
Lawyers are criticizedn
And on other fronts, Clayton also criticized some of the lawyers who advised potential ICO organizers.n
Clayton said:n
n”First of all, what bothers me most is that many ICOs also seem to involve lawyers, who, on the one hand, helped the sponsors build products that have the key features of the securities issue but call it ICO but it sounds like Close to the IPO. “n
nThe problem, according to Clayton, is the “as the case may be” ambiguous counsel’s advice given by blockchain use cases, ignoring whether or not the token has a similar definition of securities under US law.n
He concluded: “On these issues, I have instructed SEC staff to be highly alert to lawyers who may violate the spirit of our securities laws and the professional obligations of U.S. law firms.”n

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