The SEC is now monitoring the ParagonCoin deal and other pending ICOs to see whether they’re breaking that rule, according to a person familiar with the matter. Since many ICOs, including Paragon, are not registered with the regulator, the agency is keeping an eye on the market by following news reports on them, the person said. ParagonCoin hasn’t been accused of wrongdoing or triggered any SEC action.
“Our token’s not a security, it’s a utility,” she said in an interview. In addition to being used to pay, the coins will grant holders the right to vote on changes to how Paragon runs its business or to present ideas for how it could evolve, she said.
“The SEC is doing their job, they’re really trying to find the people breaking the rules,” VerSteeg said. “I’m actually thankful for them. I think to be scared of them means you’re doing something wrong.”
‘Enforcement 40’ for 2020
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