News ICO Pros Call for Self-Regulation Citing SEC Risk -...

ICO Pros Call for Self-Regulation Citing SEC Risk – CoinDesk


- Advertisment -

The initial coin offering (ICO) community needs to embrace self-regulation now to lessen the blows likely to come from enforcement and regulatory actions, according to speakers at CoinDesk’s Consensus: Invest yesterday.

A crackdown in the U.S. is inevitable, perhaps as soon as six to 12 months from now, warned Charles Hoskinson, CEO at Input Output and former CEO of the ethereum project.

This will likely occur once unsophisticated retail investors start to lose money in the space and run to the Securities and Exchange Commission (SEC) in search of recourse, he said during a panel discussion at the Tuesday conference in New York.

“I do believe there’s going to be some form of enforcement because, basically, what you have now is people offering [cookie-cutter ICO] services. It’s all just semantics and structuring and so forth,” Hoskinson said, adding that, while some projects may withstand scrutiny, many will not.

“When you see these types of structures, maybe some of them are legitimate, but 80 or 90 percent will end up just being ‘me too,'” said Hoskinson.

Shining light?

Given that landscape, Matthew Roszak, co-founder and chairman of Bloq, argued that the ICO community in the U.S. needs to do a better job of self-regulating and self-policing, so that when regulation does come, its effects will be blunted.

Roszak explained:

“There is a lot of froth and crappy ICOs out there. We as a community need to put our best foot forward to say ‘Let’s start thinking about frameworks for best practices and self-regulate ourselves.'”

Another panelist, Olga Feldmeier, chief operating officer of Smart Valor, a blockchain finance startup based in Zug, Switzerland, offered the country’s ICO community as an example of what has been, to date, a successful embrace of effective self-regulation through the use of guiding principles such as transparency in vesting.

However, Feldmeier added that the example of Switzerland might not be easily extrapolated to the U.S. because it is a such a small jurisdiction that has a longstanding tradition of self-governance in financial services.

Roszak, who is a founding member of the Token Alliance – a Chamber of Digital Commerce initiative that aims to develop best practices – added that taking steps now to ensure transparency and auditability, such as lockups during token sales and sound treasury management, will mitigate headaches down the road.

“When [regulators] show up, the pendulum swing is usually overdone,” Rozak said. “But if we as a community say ‘Let’s self-regulate,’ all these things will delay some of that regulatory friction that’s going to be upon us.”

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Bloq. 

Event image via Aaron Stanley for CoinDesk

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at

Source link


Please enter your comment!
Please enter your name here

Latest news

5 of the Best Crypto Jobs Sites

The cryptocurrency and blockchain job market has exploded. With new blockchain start-ups and projects being founded at...

What’s the future of decentralized blockchains?

When Bitcoin was new and not valued at anything or just a few cents anyone could join...

My 5 favorite free crypto tools & sites I use daily

So I often get asked by friends, or people visiting my site about new tips for exciting...

Cryptocurrency is The Last Kingdom Where You Can Keep Your Data Private

Data privacy has been a hot topic for quite some time now and particularly after the popularity...
- Advertisement -ICO Pros Call for Self-Regulation Citing SEC Risk - CoinDesk

How To Travel With Bitcoin: 9 Travel Companies Accepting Bitcoin

Bitcoin travel is a reality, as several travel companies now accept payments in cryptocurrencies for their services.

Top 5 Ways To Build a Profitable Business in The Crypto Sector

The crypto industry has grown significantly despite criticism and a skeptical approach from regulators across the globe....

Must read

5 of the Best Crypto Jobs Sites

The cryptocurrency and blockchain job market has...

What’s the future of decentralized blockchains?

When Bitcoin was new and not valued...
- Advertisement -

You might also likeRELATED
Recommended to you