ICO Cryptocurrency Could Be Legal And Heister Peirce Has A Plan

Back in 2017 the ICO cryptocurrency that emerged from the initial coin offerings, got a lot of support from the crypto fans as a preferred way of corporate fundraising. During the buzz, the crypto companies rushed to cash in by selling the tokens to the investors and fans. In our cryptocurrency news today, we read more about how they can be made legal again.

The Securities and Exchange Commission warned against ICO cryptocurrency back in 2018 and then declared these offerings to be the illegal sale of securities. However, the SEC commissioner Heister Peirce is coming up with a plan that would permit ICO sales as long as they comply with a new set of rules. Peirce who proposed the plan during a blockchain event conference in Chicago, says that she wants to create a safe harbor that will give the digital projects three years to show that the tokens they launch are not securities.

In an interview, Peirce commented that her fellow SEC commissioners have a lot of concerns that are legitimate about the potential fraud for these ICO offerings. She says that the new set of rules that she has proposed will also protect investors while allowing innovation to increase. These rules will require some of the companies that sell tokens to publish information about their projects on their websites along with the IDs of the team members, source code of the project, financial beneficiaries and transaction history. The companies will also have to file notice documents with the Edgar system of the Securities and Exchange Commission.

If Pierce’s proposal gets approved by the SEC, it will address the complaints by the crypto supporters that the agency is crushing the innovation in the financial technology and pushing the investors to leave the states for places with a better regulatory climate such as Switzerland and Asia. Catherine Coley of Binance US stated:

 “If adopted, the proposed safe harbor could be the most groundbreaking development for the U.S. cryptocurrency market to date. In the long run, it will help bring more Americans into digital asset trading and foster greater network participation.”

Peirce’s plan could also allow speculative excesses and fraud that happened during the 2017 bubble, to be eliminated. As much as 2000 coins in 2017 and 2018 were red-flagged because they were either plagiarized or contained fictitious biographies. Peirce who got the nickname ‘’crypto mom’’ acknowledged that there’s a huge risk of digital token scams but her plan will prevent them:

“My message to people is always think carefully before you buy something,” she says. “For companies, if you don’t share the required information, the SEC can bring a fraud case. It’s designed to shed light on these projects.”