At the February 6, 2018 Senate Hearing of the Securities and Exchange Commission (SEC) and Commodities and Futures Trading Commission (CFTC) SEC Chairman Jay Clayton said initial coin offerings will be subject to stricter regulations, while true cryptocurrencies will be adopted with policies intelligent.

Difficult for ICOs

previously reported by Cointelegraph) Jay Clayton noted that each ICO token that the SEC has seen up to now is considered a title and explained that if a crypto-asset issued by a company increases in value over time depending on the performance of the company, a title:

"You can call it a coin currency, but if it works as a security, it's a security. "

Although most IFAs do not offer an issue in their p In order to avoid SEC regulations, if the SEC considers tokens whose value increases depending on the performance of blockchain projects with tokens, so virtually every ICO can be considered a title.

Clayton also sent a warning to the OIC projects and to the symbolic issuers in the market, stating that the SEC intends to impose tighter restrictions on the company. 39, OIC Ecosystem:

"A note for professionals in these markets gymnastics … is squarely in the sights of our division of execution."

Jay Clayton, President of the Securities and Exchange Commission of the United States

Cryptocurrencies True

However, Clayton make a distinction between ICO tokens and major cryptocurrencies such than Bitcoin and Ethereum. He tagged ICO chip titles, while classifying the others as "true cryptocurrencies," promising smart and practical rules for trading and investing in cryptocurrencies.

Clayton referred to true cryptocurrencies as Blockchain public networks with native cryptocurrencies. If a certain company has control over the monetary supply of its crypto-asset distributed to its users and that the value of the token is based on the performance of the business, Clayton reiterated that the token is a security and falls

CFTC President J. Christopher Giancarlo and Senator Mark Warner stated that cryptocurrencies like Bitcoin and Ethereum can not be separated from their respective Blockchain networks. cryptocurrencies.

"I do not think you can separate Blockchain crypto-currencies," said Senator Warner, as chairman Giancarlo echoed a similar sentiment. "It's important to remember that if there was no Bitcoin, there would be no Blockchain or distributed registry technology," added President Giancarlo – an expression already famous

What can the market expect?

The space and ICO projects within this industry may encounter difficulties in performing symbolic crowdfunders due to regulatory conflict with the SEC. Blockchain projects may still lead ICOs outside the US, but it remains possible can target a project with investors based in the United States.

For many months, the majority of ICOs around the world have excluded US-based investors from strict SEC regulations. transition to private token sales, distribution of tokens to whitelisted buyers This trend is expected to continue over the long term and, ultimately, public token sales will no longer be available.

The outlook looks different from the global cryptocurrency market. Cryptocurrency trading and investors can expect more friendly settlements in the future. As suggested by President Giancarlo, a national licensing program and unified regulatory frameworks could be implemented in the near term, such as the Japanese system.

"We need this new generation to respect the enthusiasm for virtual currencies with a thoughtful and balanced response, not a disdainful."

J. Christopher Giancarlo, Chairman of the United States Commodities and Futures Trading Commission

Currently, cryptocurrency regulation differs from state to state and for cryptocurrency companies to small and large scale. This variance in regulation often results in an increase in legal costs of up to millions of dollars.