U.S. regulator the Securities and Exchange Commission (SEC) has emphasized guidelines on initial coin offerings (ICOs) in a tweet sent out on February 10, as efforts to formalize the space go on.
A focused section of the regulator’s website now lists five elements of ICOs the SEC considers significant, as well as a different section for investors and market professionals.
The content appears to have endured since March last year, with the SEC choosing to draw attention to it on social media this weekend.
The material remains the most accessible publication into the ICO sector yet by the SEC, coming in the form of a user guide rather than technical literature.
The five descriptive aspects appear to abridge the organization’s existing perspective. These include confirmation a token issued in an ICO can be a security in need of registration with the SEC, regardless of how its issuer refers to it.
The guide also references to risks involved for investors and asks them to do their own comprehensive research before investing.
“Companies and individuals are increasingly considering initial coin offerings (ICOs) as a way to raise capital or participate in investment opportunities,” a summary of the guide reads:
“While these digital assets and the technology behind them may present a new and efficient means for carrying out financial transactions, they also bring increased risk of fraud and manipulation because the markets for these assets are less regulated than traditional capital markets.”