According to the CoinDesk, amid the reeling of the market from the settlements that were made by the Securities and Exchange Commission of the United States with the issuers of ICO who had not registered their securities as tokens, there is something significant that has been overlooked by all.
The settlement between the Securities and Exchange Commission took place last week with AirFox and Paragon which were the first cases and were purely because of the failure of registration and not because of any fraudulent activity.
In an over-reaction to this settlement that market assumed that the ICOs are not “over” which is far from true.
What is actually over is the hype of the structure of the tokens which does not make any sense along with the raising of funds without any business plan and the Initial Coin Offerings that has been following the model of #metoo.
According to the CoinDesk, this is just the beginning to a more realistic as well as constructive phase.
The director of the Securities and Exchange Commission revealed earlier this month that the commission is planning to release guidance in “plain English” in order to make it clear that when the token is a security and when it is not.
The part that has been over-looked is the settlement of the SEC with the EtherDelta which is a decentralized exchange for the tokens which are ethereum based.
The company has been accused of breaking the laws of securities.
The company neither registered the platform with the Securities and Exchange Commission nor did it operate under an exemption.
This was the Commission’s first ever enforcement and the SEC outlined what is exactly considered as an “exchange”
The most important detail is that the SEC has as yet not prosecuted the exchange
Source: CoinDesk, Investing