Statement on NASAA’s Announcement of Enforcement Sweep Targeting Fraudulent ICOs and Crypto-asset Investment Products — SEC

I applaud our fellow regulators in the United States and Canada who are coordinating and participating in efforts to police fraud in the Initial Coin Offering (ICO) markets.  These state and provincial regulators play a critical role in protecting Main Street investors.

When investors are offered and sold securities, whether through traditional channels or through an ICO on a sales-oriented website, state and federal securities laws apply.  These laws have applied to our securities markets for over 80 years.  At their core, these laws require full and fair disclosures of material information about both the securities and the venture being funded.  Unfortunately, some market participants seem to believe that the use of new technology provides a basis for ignoring the core principles of our securities laws….

via SEC.gov | Statement on NASAA’s Announcement of Enforcement Sweep Targeting Fraudulent ICOs and Crypto-asset Investment Products.