The president of CBOE Global Markets, Chris Concannon, recently stated that the Initial Coin Offering (ICO) market could face a two-fold regulatory “reckoning”, according to a report on Business Insider this June 19th.
As Concannon predicts, the reckoning will come in two waves. The first one will be the one from the US Securities and Exchange Commission (SEC) which will classify ICOs as unregistered securities and the holdings of investors would be “rendered valueless” in cases like these. This would cause the second wave as a slew of class-action lawsuits are currently filed against the companies and the ICO projects by them.
“The reckoning will come in two waves. First, the SEC will go after ICO market participants. Then, class-action lawsuits against the teams behind ICO projects will surge.” Concannon stated.
On top of this, the Global Markets’ President also said that ICO investors should “should lay awake at night” worrying about the potential uncertainty in the ICO market. As he told BI, ICO investors should “lay awake at night” worrying about the uncertainty in the ICO market. He also explained that if someone offers an unregistered coin, they would technically have issued an unregistered security which will be seen as “an unregistered underwriter” in the eyes of the law. Concannon stated:
“If you sold someone an unregistered security you are liable to them if they decide to take them to court.”
Meanwhile, financial regulators have urged the public to comply with the existing laws, taking action against those who failed to do so.
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