Basically the SEC is making it easier for cryptocurrencies to legally IPO with an ICO if that makes sense. They have lifted the caq from 50 million to 75 million and a few ICOs have already launched under this rule. The SEC’s aggressive pursuit of cryptocurrency projects, traders and exchanges will either have one of two effects in my opinion.
- The SEC could create a strong cryptocurrency ecosystem if it is fair with its rules and regulations. This would be positive for the US cryptocurrency market.
- The SEC could completely alienate cryptocurrency users, traders and exchanges and force the majority of money to move offshore and this would be disasterous for the US economy but not necessarily cryptocurrency in the longterm.
It is concerning that the SEC seems to be going after even large firms and ICOs like tZero. If they are trying to show no one will be exempt they’re doing a good job but they’re also giving incentive to ICOs and related business to move away from SEC jurisdiction. Another concern is that the SEC as a branch of the US government can now legally and literally censor ICOs. If an ICO is coming out that restores free speech and the US government doesn’t like this do you think they will be allowed to ICO by the SEC? It could lead to far more than just financial consequences very quickly.
Only time will tell where things head but so far I suspect things are heading out of the SEC jurisdiction and people, especially investors, may view US cryptocurrency companies as a ticking time bomb or at least a liability.