Case-By-Case or Cease-and-Desist? In Search Of a New Approach to ICOs

That rumble you hear is the sound of regulators around the world mobilizing resources to tackle the pressing matter of token sales.

Yet, in spite of the spectacular growth of blockchain token-based funding, no one seems to have a clear idea of what type of rules to introduce. The resulting uncertainty (not to mention ridicule) is left hindering progress as money flows to unviable projects and investors are left vulnerable to foul play – exactly what regulation is supposed to prevent.

Perhaps a new approach is needed.

But to see where this could go, it's worth stepping back and asking what we expect the regulation to do.

Safety belt

First, why do we need regulation, not just of finance, but of anything at all?

To protect us. At its roots, that is the main role of government – to protect its citizens from avoidable harm and extreme loss brought about by others or from our own lack of common sense. When it comes to securities, that usually means stopping us from making poor decisions.

Read more @ the source: https://www.coindesk.com/case-case-cease-desist-search-new-approach-icos/