The cryptocurrency and ICO markets have grown rapidly. These markets are local, national and international and include an ever-broadening range of products and participants. They also present investors and other market participants with many questions, some new and some old (but in a new form), including, to list just a few:
- Is the product legal? Is it subject to regulation, including rules designed to protect investors? Does the product comply with those rules?
- Is the offering legal? Are those offering the product licensed to do so?
- Are the trading markets fair? Can prices on those markets be manipulated? Can I sell when I want to?
- Are there substantial risks of theft or loss, including from hacking?
The answers to these and other important questions often require an in-depth analysis, and the answers will differ depending on many factors.
On December 11, 2017, SEC Chairman, Jay Clayton, issued a public statement on ICO’s and cryptocurrencies. In his statement, Chairman Clayton, outlined a number of considerations for investors and market professionals, along with additional comments on cryptocurrencies, ICO’s, and securities regulation.
The full statement can be found on the SEC web site.