SEC warns investors that listed companies are using ICO to raise prices

nnnThe Securities and Exchange Commission (SEC) once again issued an investor warning yesterday to remind investors that some listed companies may use the encrypted currency as a gimmick to promote, so as to pull the stock price and manipulate the market. Since the July SEC released the DAO project survey report, the agency gradually step by step to gradually freeze the stock trading of multiple companies. Some critics say the agency’s move is “very reasonable and prudent”.n
nnTranslation: Clovern
nThe Securities and Exchange Commission (SEC) warns investors that some stock market scams may use the encrypted currency as a risk of the promotion strategy.n
nThe SEC issued an investor warning earlier today warning that the content focused primarily on the promotion of currency-based promotional activities by listed companies and is not a start-up or project team that has not yet been listed on an exchange or off-site market.n
nThe SEC said in a warning:n
nn”Scammers often try to use the attractiveness of emerging technologies to persuade potential victims to invest in their scams, including those that claim that they can allow investors to reach out to these emerging technologies in the stock market ‘pulled up’ and carry out Market manipulation. “n
nnIndeed, the SEC has ordered a freeze on a number of companies’ stock deals and has frozen three companies over the past month. And whether the agency is carrying out some concerted efforts remains to be seen.n
nAs CoinDesk reported at the end of last month, the SEC announced its findings for the DAO project, which identified the tokens offered with the failure of the ether-based financing facility to form securities. In addition, the agency said that other tokens may also belong to the definition of securities.n
nSince the release of the results of the SEC, a similar statement has been issued by securities regulators in Canada, Singapore and other countries, indicating that certain tokens are regulated by laws and others are not regulated.n
nPeter Van Valkenburgh, head of research at Coin Center, a non-profit initiative, commented on the SEC’s announcement today that the SEC’s move was “very reasonable and prudent” and considered it a part of the broader process since July.n
nHe said to CoinDesk:n
nn”The continued attitude of the SEC has taken a very reasonable and prudent approach to dealing with ICO-related investor protection issues, which are not like a sudden throw of a blockbuster, nor have they pursued large-scale successful open source projects. On the contrary, it is quite limited.n
nnOther commentators believe that the news released by the SEC today is only the next stage of its long way to regulate in this area.n
nIndustry Trade Organization Digital Chamber of Commerce President Perianne Boring said:n
nn”We can see that the SEC’s interest in digital assets is growing more and more from the recently released reports of the The DAO project and the suspension of transactions, which has become increasingly active in the field of digital money and tokens Is ICO) law enforcement activities, “at the same time, she added:n
n”We expect the SEC to take more steps.”n

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