THIS WEEK: Regulating ICOs and Empowering Blockchain
In this week’s episode we will continue the discussion of the regulatory aspects of ICO’s. I will discuss the comments of Jay Clayton the SEC Commissioner and his selection of a ICO Csar since the airing of our show last week.
David and Lahdan will dive into various case studies and discussed good and bad ICOs. Lahdan Rahmati, an associate attorney at Bevilacqua PLLC and an active blogger of ICOs, emphasizing that she is not representing the opinions of her firm in this show, she noted that the ICO model has been used by many corporations to raise more than 12 billion dollars. Cryptocurrencies have many qualities such that the SEC can view it as a security, the IRS can use it has property, and etc.
However, some ICO companies are running into legal problems, and SEC created a cyber unit to keep the public safe from various aspects of the rapidly expanding cryptocurrency market. Lahdan introduces PlexCoin as an example of of a ‘bad ICO.’ In December 2017, PlexCoin was shut down by the SEC after legal trouble involving 15 million dollars raised through illegal fundraising.
We will also discuss the comments of Jay Clayton, the chair of the US Securities and Exchange Commission (SEC), believes that Bitcoin(BTC) is not a security since it acts as a replacement for sovereign currencies, CNBCreports June 6.
We will discuss his selection of a Crypto Csar: One of the U.S. Securities and Exchange Commission’s leading officials on cryptocurrency and token sales has been named to a new senior advisory position.
The agencysaidMonday June 4 that Valerie Szczepanik will serve as associate director of the Division of Corporation Finance and senior advisor for digital assets and innovation, reporting to division director Bill Hinman. According to theSEC, Szczepanik – who led its distributed ledger working group,as previously reported– will “coordinate efforts across all SEC Divisions and Offices regarding the application of U.S. securities laws to emerging digital asset technologies and innovations, including initial coin offerings and cryptocurrencies.”
The SEC won’t budge when it comes to how it regulates token sales, the agency’s chairman remarkedon Wednesday.Speaking to CNBC, Jay Clayton stated that sales of security-like tokens must follow the letter of the law.
“If you have an ICO or a stock, and you want to sell it in a private placement, follow the private placement rules. If you want to do any IPO with a token, come see us.” The SEC would be “happy to help you do that public offering,” he added.
We’ll finish the show with a topic for debate Will ICOs Render VCs Obsolete?
Tune in to learn more!
David continues the talk about the Blockchain.
David continues his discussion on ICO’s and lets people know all their options on ICO’s. He discusses the comments of US Securities and Exchange Commission Chairman, Jay Clayton on ICO’s. He briefly discusses Clayton’s statement that “agency won’t change securities laws to cater to cryptocurrencies.” They are now putting regulation on ICO’s.
He continues his discussion on Jay Clayton interview about ICO’s. Clayton says “If you have an ICO or a stock, and you want to sell it in a private placement, follow the private placement rules,” He also said “If you want to do any IPO with a token, come see us.” David breaks down a little more about Clayton’s statements in his interview while going into discussing regulations and basic of KYC. He addresses the questions of people asking where they should raise their capital and start their ICO’s.
He introduces a guest to Building The Blockchain. His assistant Bryan discusses his background in blockchain and financing. Bryan as an entrepreneur tells his views on information sharing on Blockchain. He briefly talks about Blockchain with David and how it can not be hacked like other things. The briefly discuss digital wallets and passports and the social impact of companies. Bryan talks about the innovative solutions going on in Africa like PASHA Mobile Bank which is secure and sending an abundance of many int and out of Africa.
David continues his conversation on social impact of undeveloped countries. Most of their banking is going on online. He opens the conversation to get different opinions on revolutionizing the blockchain. David addresses venture capitals and their funds. Which one are better ICO’s or VC’s, or are they both acceptable?