SEC

What does the name Blochein mean? SEC demands more than just bait for investors

Companies that want to profit from the excitement in the crypto industry have received a note from the US securities chief regulator: better work more, and do not change your name.

The Securities and Exchange Commission will monitor how firms change their names to make sure that this is done not just to lure investors wishing to jump into the blockbuster sphere. Chairman Jay Clayton said on Monday:

"The SEC is scrutinizing public companies that are changing their business models in order to benefit from the alleged promise of distributed register technology," Clayton said. The SEC wants everything to conform to the laws on securities.

Clayton is alarmed by the initial offerings of coins, which, he says, are by definition securities that are not in compliance with US laws in many cases. He did not name any names in his speech, but joked about a company that does not have a crypto currency expertise, but at the same time changed its name to "Blockchain R Us".

A number of companies have changed their names or business strategies in recent weeks to cover the mainstream with digital coins and have seen their stock prices skyrocket. Thus, Long Island Iced Tea Corp. grew three-fold after becoming Long Blockchain and Eastman Kodak Co. has gained a 200% increase at the beginning of this month after it announced that it will create Kodakcoin, which can be used to purchase photos in an online database.

Clayton expressed his concern on Monday about how ICO and crypto-currencies can affect retail investors. He said that he was worried about "absolutely unregulated character".