SEC's Clayton: 'Come See Us' If You Want to Do an ICO

The SEC won't budge when it comes to how it regulates token sales, the agency's chairman remarked on Wednesday.

AccessTimeIconJun 6, 2018 at 6:31 p.m. UTC
Updated Sep 13, 2021 at 8:01 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The SEC won't budge when it comes to how it regulates token sales, the agency's chairman remarked on Wednesday.

, Jay Clayton stated that sales of security-like tokens must follow the letter of the law.

"If you have an ICO or a stock, and you want to sell it in a private placement, follow the private placement rules. If you want to do any IPO with a token, come see us." The SEC would be "happy to help you do that public offering," he added.

In the interview, Clayton sought to clarify the kinds of characteristics that the agency would look for when determining whether a blockchain-based token constitutes a security.

"A token, a digital asset, where I give you my money and you go off and make a venture, and in return for giving you my money I say 'you can get a return' that is a security and we regulate that," he told CNBC's Bob Pisani. "We regulate the offering of that security and regulate the trading of that security."

And when asked if the agency would come out with a clearer statement on the matter, Clayton responded: "Bob, I hope I just did."

According to a transcript published by CNBC, Clayton declined to say whether tokens like ether or XRP constitute securities, as some have argued.

SEC said last summer that "U.S. federal securities law may apply" to ICOs that it would regulate "various activities, including distributed ledger technology, depending on the particular facts and circumstances, without regard to the form of the organization or technology used to effectuate a particular offer or sale."

Clayton's comments follow the appointment of Valerie Szczepanik as the agency's point person on token sale and cryptocurrency matters. Szczepanik previously led the SEC's distributed ledger working group.

Image via YouTube

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.