“The additional of virtual currencies to the annual list is the latest example of the SEC sounding alarm bells over potential dangers behind the global investment craze. Chairman Jay Clayton has said that ICOs are improperly skirting SEC registration requirements and that the market is probably full of fraud,” according to Bloomberg.
Bitcoin futures are currently live on Cboe and CME with Nasdaq still considering a launch of similar products later this year.
Also in January, the SEC revealed a hard stance on companies and funds using “blockchain” in their names.
“The SEC is looking closely at the disclosures of public companies that shift their business models to capitalize on the perceived promise of distributed ledger technology and whether the disclosures comply with the securities laws, particularly in the case of an offering,” said SEC Chairman Jay Clayton.
A blockchain is a decentralized database shared across all users that facilitates the process of recording transactions and tracking assets across a business network. This foundational technology is expected to pave the way for significant disruptions across many industries.
For more information on the cryptocurrency market, visit our Bitcoin category.