The SEC moves against Veritaseum (VERI)
In the latest SEC action against a crytpo company's ICO, the SEC has shut down Veritaseum (VERI) and forced the company and its founders to pay about $9.4 million in disgorgement and fines.
This article - https://www.theblockcrypto.com/post/45617/veritaseum-and-founder-middleton-settle-with-sec-agree-to-9-5-million-payment-and-permanent-digital-asset-bar - is horribly written and misses key points, but note that the idea you can raise money for your project by selling unregistered digital assets, pay a fine to the SEC and keep on going (as was the case for B1 and SIACoin) is not true in all circumstances. Here the project was not only shut down by the SEC, but the company and founders were also banned from ever issuing issue digital assets again, forever. Chilling.
I don't think the market has realized it yet, but a premium will likely emerge for those blockchains that have SEC clarity (e.g., BTC, ETH, EOS, SIA), while newer projects will find it increasingly difficult to raise funds, at least anywhere near the USA or USA-based investors.
The company could have been baloney -- no clue -- but you sell unregistered assets to the US public and then act cocky with the SEC -- as Veritaseum seems to have done -- and there is almost certain to be trouble.
As the SEC moves against other crypto projects, are we going to see development and innovation stall as everyone diverts significant resources towards placating the SEC, or is innovation simply going to move to friendlier jurisdictions and continue doing good stuff leaving the USA behind?
Carl Kruse
http://www.carlkruse.com
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