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RE: Is your coin a friend to a government? Is legitimacy going to become mandatory?
Great article. My reading of the quote from the SEC is, while not all initial coin offerings are scams, they sure as hell will crack down on the ones that are scams. To me this is just like how pump and dump penny stocks eventually get de listed. I recall an incident a few years back with a wave of de listings / suspensions of marijuana stocks, now its crypto penny stocks like BITCF.
Is the SEC doing this to protect us from scams or to protect US national security? If it's about North Korea and ISIS I can understand it. I don't really see how the whole accredited investors thing protects us from scams, if anything it puts new risks.
I agree the accredited investor rule doesn't help average investors. In my view, the exemption from registering security when offering to accredited investors is not for the benefit of even the accredited investors, rather it is to the benefit of hedge funds or private equity funds to privately offer investment rounds to high net worth folks, without being subject to the SEC requirements. Accredited investors are high income/assets.
I think there is an assumption by the SEC that many of the people getting involved in initial coin offerings are not accredited investors and therefore the claims by initial coin offerings of being exempt from the SEC rules is at a minimum, questionable and warranting diligence. If the SEC is trying to make public outreach, perhaps they could've made that point a little more clear so that is not only readable by finance folks.
That doesn't make sense to me. What is the motivation of the SEC to put so much resources and effort toward that?
I beleive it allows SEC to allocate its limited resources mostly to the securities that are offered to the general public, such as stock exchange (and now, crypto ICOs).
The SEC is not there to protect you from scams. It is a control mechanism. The whole world investment system is based on organized fraud. It is only called a scam if it is done by a small time player. When the big boys and governments do it, then it is by definition legitimized.
The governments of the world will eventually want to recapture their former monopoly over money. Crypto is small potatoes at the moment, so most governments can't be bothered to do anything, yet. The time will come when the hammer will drop. I wish it were not so, but governments want control and they want monopoly. That is their nature.