In a speech made yesterday, Avakian promised an upcoming recommendation of stricter regulations, addressing the illegal initial coin offerings, failing to comply with the registration demands
The co-director of enforcement pointed the set of principles guiding the authority’s process of decision-making in terms of policies, further explaining the process of addressing the non-compliance in the sphere of initial coin offerings and digital assets.
Avarkian has specified that the freshness of token sales and the potential use cases of the underlying technology, such as blockchain innovations arise excitement among financiers engaging in these token sales
Nevertheless, she pointed out that the market’s enthusiasm for token sales can be exploited to disguise the harsh reality of them often being investments of high-level risk, as they might miss viable production, have vulnerable business models, or merely be downright fraudulent.
Generally, Avarkian stated that any problems connected with initial coin offerings and digital assets shall be tackled by the Division of Enforcement of the US SEC, and clarified that the ongoing work regarding the ICO space and various other problems related to digital currency is already bearing fruit.