The CEO of the cryptocurrency technology company Ripple, Brad Garlinghouse participated of a podcast with Joseph Grundfest, ex – commissioner from the securities and exchange commission of the United States (SEC). During the conversation several subjects was talked , but, the one that caught more attention was about the Initial Currency Offers (ICO) and the declaration of them as titles.
The most of the ICOs accept Ethereum funds as payment and Bitcoin at the moment of the offer of your tokens. This action by themselves could classify tokens as titles, but the token price and the success of the investment depends of the effort made by those that accepted the funds (the creators and ICO founders).
The fact of the ICOs not to be regulated in the market, already took to several frauds. Talking about this subject, Grundfest said: “If these instruments are, actually, real estate values , then they have to comply with all the regulamentation of the securities and exchange commission of the United States (SEC).
He kept saying about this Token’s register process as a guarantee, finding exemptions of certain requirements and others factors, as the restriction of the sell in seconds markets. He affirmed this is only added attrition to the process, and this is “the last thing” that someone would like to the fast and cheap transactions.
Garlinghouse provided statistics about the selling of ICOs in 2017, affirming that already got to more the US $3 billions, while in 2018 increased to US $ 10 billions. Besides that, he affirmed: “ I would imagine the ICOs market would decelerate in 2018, already the regulatory bodies, as SEC, interposed and, in a proactive way, called for fraud. In many cases, actually, think that are titles and must to be regulated like this way this year.