ICO's and Exchange Operations Could Be Frozen For 12 Months

Today, in a rather troubling development, it was announced that following the SEC statement, that affirms some of the coins traded in the exchanges can be classified as securities, the market could be stalled for 12 months, according to an article by CoinDesk. Also today, the Ethereum co-founder stated that the market could use a “pause”, when asked about fraudulent ICOs. This would put a halt on the ICO craze, at least in the USA, and would irrefutably redirect ICO inversion to other countries.
The fact is based on declarations of Nick Ayton, CEO of ChainStarter, a company that kickstarts other blockchain based companies. He declared that they believe that the SEC, the American financial watchdog, is going to declare that all coins are securities in the near future. The market will be frozen because the exchanges would have to seek exemptions of law, or trade coins using a third party.
The problem is that, even if the exchanges register themselves as security trades, they would still be facing a 12-month lock due to already existing regulation. It all sounds a little dystopian, but it is still in the realm of possibility.
The consequences of developments like the ones discussed would be enormous. Exchanges would be also affected and they would also face a halt on their operations. It all depends on the SEC’s considerations about it. The problem is, with the state of the market and the uncertainty of the regulations, any company wanting to invest in these instruments would be scared of infringing. This would be the latest attack on ICOs by the American watchdog, after subpoenaing all ICOs, and requiring crypto exchanges to register as normal exchanges earlier this month.

Related posts
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTcryptocurrencymastercardNewsxbtusd

Mastercard Survey Shows High Consumer Interest In Bitcoin

A recent survey by the electronic payment giant Mastercard indicates that 4 in 10 people (40%) intend to utilize digital currencies such as Bitcoin as a payment method within the next year. The figures involved in this finding spanned all…
cryptocurrencyCryptocurrency NewsDOGEdogecoinDOGEUSDNews

Dogecoin Becoming A Legitimate Asset In The Crypto Space – What This Means For The Meme Coin

When Dogecoin came into the crypto market, many expected the apparently very funny joke to just get people laughing and then fade off. However, this expectation has been met with immense hysteria. DOGE has continued to entrench itself deeper into…
BanksBitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTMarketsNewsUSAxbtusd

Bitcoin Retakes $57K As Hundreds Of US Banks Prepare To Offer Crypto Trading And Custody To Clients

Bitcoin has recouped the losses from recent sell-off after news that the world’s oldest cryptocurrency is soon coming to hundreds of United States banks. Data from CoinMarketCap shows that bitcoin is hovering at $57,091.36 at press time, with 5.47% daily…