The US Securities and Exchanges Commission (SEC) has released its annual report for the fiscal year 2018, and unsurprisingly a more significant portion of the release focused on ICOs.
Given the popularity of Initial Coin Offering amongst U.S investors, the regulators revealed that they have investigated several projects within the last year and outlined what principles they put into consideration before deciding on whether an ICO is safe or not.
According to the document, five principles used by the SEC to enforce actions on ICOs include a focus on protecting investors, a focus on individual accountability, keeping up to pace with technological advancement, assessing resource allocation and imposing remedies that will allow further enforcement actions.
To this regard, the regulators said that several investigations had been opened against suspected ICOs while a number of these cases were still ongoing.
SEC Regulatory Match Against ICOs Will Continue
For the period under consideration, the SEC reportedly brought 20 enforcement actions against ICOs and crypto companies while in 70% of those cases, the projects were charged.
Among the charged projects with fraudulent ICOs or unregulated businesses were AriseBank, Titanium Blockchain Infrastructure Service, Tokenlot and 1broker. A recent case involving the EtherDelta exchange founder was not included since it happened after the SEC fiscal year ended in September.
For the new fiscal year, the agency pledged to continue protecting investors by fishing out fraudulent projects. Some measures currently being taken by the regulators include “issuance of public statements—to educate investors and market participants, including lawyers, accountants, and other gatekeepers” according to the report.