Cryptocurrency worries are permeating the Securities and Exchange Commission.
The SEC’s Enforcement Division already has many cryptocurrency investigations going on, says Enforcement Co-Director Stephanie Avakian. Meanwhile, SEC Chair Jay Clayton predicts there will be more enforcement actions unless players in the industry change their behavior. Their comments came this weekend during the annual two-day SEC Speaks conference, where leaders of the regulator’s major sections said cryptocurrency has become an across-the-board priority.
Earlier this month, Clayton told the Senate Banking Committee of his concerns that the markets for cryptocurrencies and the related Initial Coin Offerings (ICOs) were victimizing investors with poor, incorrect or non-existent disclosure, volatility, manipulation, fraud and theft. So far, no ICOs have registered with the SEC.