The Wall Street Journal stated Wednesday that The Securities and Exchange Commission (SEC) is taking a serious look into the cryptocurrency market. For the investigation, the SEC issued “scores of subpoena” to interview advisors and companies involved in the cryptocurrency market.
The Journal’s sources said that the SEC is looking for information regarding the way Initial Coin Offerings (ICOs) operate.
Jay Clayton, SEC chairman, has been overall critical of the way cryptocurrency companies use ICOs for fundraising.
Earlier this month, during a congressional hearing, he declared that “Many ICO’s are being conducted illegally” and followed by saying “They are not following the securities laws. Some say that is because the law is not clear. I don’t buy that for a moment.”
$6.5 Billion was raised in ICOs last year. It is a growing market with a lot of great projects, but also a lot of scams and worthless ideas. Only time will tell what the regulations the SEC will put in place will be.
SEC representatives refused to talk to The Wall Street Journal.