US securities regulator unfurls framework for digital coin offering (ICO)


by   |  VIEW 945
US securities regulator unfurls framework for digital coin offering (ICO)

Adding a sweetener for the ICO (Initial Coin Offering) issuers of digital coins or cryptos, a top US financial regulator had submitted a proposal on Thursday, the 6th of February 2020, saying that the technology trading start-ups could be spared current securities legislations during raising capitals in form of digital currencies.

Nonetheless, the top US financial regulator had also recommended a transition plan to return in to original assets from cryptocurrencies after three years. Aside from that, the top US financial regulator, a US SEC (Securities and Exchange Commission) commissioner, Hester Peirce, was also quoted saying in an industry conference in Chicago late on Thursday (February 6th) that the proposed fundraising plans for the start-ups in form of digital currencies must have to prove that the digital assets could be continued to be traded as feasible securities adding the companies must notify if their digital currencies changed shapes over time and could no longer meet the criteria.

Nonetheless, Peirce’s proposal on raising funds for the start-ups through digital currencies or initial coin offering had to go through a public consultation before the US SEC (Securities and Exchange Commission) could turn it in to a viable regulation, however, analysts said Peirce’s plan could open a pandora’s box of a free-flow of illicit money in to the US economy in form of digital assets and had little chances to receive approvals.