The sharp rise of Bitcoin over the last few years has brought increased scrutiny to cryptocurrencies and ICOs within the US. Recently the SEC and CFTC have announced their intention to devote a large amount of resources to regulating ICOs as securities and bringing charges against those that try to circumvent regulation, as they’ve done before.
That being said, awareness of cryptocurrencies and ICOs are at an all time high, and could be successful if one is willing to deal with the regulations that are underway and likely to be imposed.
The United States is located in North America: In North America, the U.S. has had an outsize influence on the development of cryptocurrency regulation, with Canada’s smaller market now starting to catch up.
Cryptocurrency trading in United States
The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have been sending out a number of announcements over the end of 2017 and beginning of 2018 the subject of cryptocurrencies, including this one from Jay Clayton, the SEC chairman.
“Where we see fraud, and where we see people engaging in offerings that are not registered, we are going to pursue them because these types of things have a destabilizing effect on the market,” said Clayton at a meeting at the Federal Reserve Bank of New York at the end of November 2017.
That being said, the US has taken a more measured approach than other countries who have banned cryptocurrencies outright. But a lack of a uniform regulatory framework has not made uncertainty a problem for those looking at crypto or ICOs. Without a solid set of rules in place, some companies looking to go into blockchain or ICO’s future regulation could mean a big change in taxation, something that dampens the US prospects.
Regulation of ICOs in United States
In 2018 Jay Clayton and J. Christopher Giancarlo – chairs of the SEC and CFTC – wrote an op ed discussing how they are devoting a significant portion of resources to monitoring the ICO industry.
Specifically they said they were looking at tokens issued during ICOs as securities, meaning they would have to register with the platform and adhere to according regulations.
“The SEC is devoting a significant portion of its resources to the ICO market,” they wrote. Market participants, including lawyers, trading venues and financial services firms, should be aware that we are disturbed by many examples of form being elevated over substance, with form-based arguments depriving investors of mandatory protections.”
The SEC has also halted various ICO activities and filed charges against their organizers.
Cryptocurrency markets in COUNTRY
Despite this, there has been a robust appetite for cryptocurrencies in the US, with a number of start-ups forming around blockchain and launching ICOs. Additionally, while the recent rise in Bitcoin has no doubt drawn the scrutiny of regulators it has also piqued public interest, with an increasing number looking into and purchasing various coins and tokens.
IBC’s planning and strategy team can provide expert advice on ICOs in different jurisdictions. If you’re thinking of holding an ICO in COUNTRY and you’d like more information, contact us here.
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