The SEC has spoken out against the creation of a 'safe haven' for ICOs

The SEC has spoken out against the creation of a 'safe haven' for ICOs

SEC Commissioner Caroline Crenshaw has spoken out against calls for a "safe harbour" that would protect initial coin offerings (ICOs) projects from regulatory accountability.

"Had there been a safe harbour during the ICO boom in 2017 and 2018, I think the results for investors and markets would have been even worse. ICOs and other digital asset offerings raised billions, but most never delivered on their promises. Investors have suffered losses," she said.

In Crenshaw's view, instead of a "haven", a "bridge" is needed between crypto industry participants and the SEC. Projects can then better clarify regulatory compliance with the Commission, she believes.

"Like all new developments in markets, digital assets, decentralised networks and the way users interact raise new questions. If a company or its adviser is in this position, we are willing to work with them, but it's best to help if they take the lead," Crenshaw said.

In February 2020, SEC commissioner Hester Pearce introduced a proposal for a three-year regulatory holiday for tokenised start-ups.

In April 2021, she introduced a second version of the safe harbour for ICO projects.

As a reminder, Pearce, known for her friendly attitude towards the crypto industry, previously said that NFT sales could violate securities laws. She also advised DeFi projects to consult the SEC on the matter.

Like any investment, it may be a good idea to start small to learn the mechanics of buying cryptocurrencies. Exchanges comparison. How exactly does Arbismart work?

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