In spite of the fact that the US SEC has not yet developed an express regulatory structure for digital currencies, the authority has substantially emphasized the industry in 2018, specifically paying attention to ICOs. The Commission’s Division of Enforcement has revealed its fiscal year 2018 yearly report, which doubles down on fraudulent activities in the financial system and maintains the safety of the Main Street financiers.
In 2018, initial coin offerings were the main thread of the report, with approximately 30 mentions and a whole section devoted to the activity of the Commission in misconduct identification connected with cryptocurrencies and token sales. The SEC has chosen certain deals trying to give the clearest message to the ICO issuers both within the United States and all over the world. In the meantime, the fundraising is declining, being unable to exceed 300 million dollars’ level, comparing to the 3 billion dollars in the beginning of the year.
There is an opinion that the doubling down exercised by the policymakers regarding the token sales in the United States, connected with the registration process for security tokens has scared off the issuers and affected financiers, because the “registration violations” were mainly concentrated on in the report of the Commission. The impact that the SEC had on the token sale market in 2018 in spite of the insufficient policies is evident in the reversal of the trend in endorsement of ICOs among celebrities, with the SEC brining such advertising to an end by urging caution.