SEC intensifies regulatory efforts, six ICO fundraising cases charged.

Recently, the U.S. Securities and Exchange Commission (SEC) has significantly increased its regulatory efforts in the crypto assets space, frequently holding hearings and initiating multiple charges and penalties. On September 24, the U.S. Congress held a hearing on the regulatory issues concerning crypto assets and Libra.

SEC Chairman Jay Clayton stated that the regulation of ICOs remains a challenge, and the existing Securities Act has not fully resolved the issue. Currently, the SEC's regulatory approach still prioritizes investor protection while seeking broader and more effective regulatory methods.

SEC Commissioner Jackson believes that existing rules have fallen behind the pace of development in the Crypto Assets industry, and the SEC should adjust its rules towards encouraging Crypto Assets and improving industry transparency.

In fact, an increasing number of ICO projects are under the scrutiny of the SEC. According to statistics, since August, the SEC has filed lawsuits against multiple companies. These cases involve ICO project companies, digital asset exchanges, blockchain technology companies, and rating agencies, with publicly disclosed penalties ranging from $260,000 to $10.24 million.

The following are 6 cases of Crypto Assets financing charges initiated by the SEC since August:

On August 12, the SEC filed a lawsuit against Reginald Middleton and his two companies, accusing them of fraud and an unregistered ICO, and froze assets suspected of being involved in a $15 million ICO fraud.

On August 12, the SEC filed a lawsuit against the blockchain company SimplyVital Health.Inc for offering and selling approximately 6.3 million dollars worth of unregistered securities to the public.

3. On August 20, the SEC issued a fine of $260,000 to the crypto analysis company ICO Rating for failing to disclose the fees paid by crypto projects that received positive ratings.

On August 29, the SEC filed a lawsuit against Bitqyck Inc. and its founders, accusing them of deceiving investors by issuing securities and operating an unregistered exchange. The company is required to return $13 million raised and pay a civil penalty of $10.24 million.

5. On September 18, the SEC filed a lawsuit against ICOBox and its founder Nikolay Evdokimov, accusing them of violating U.S. securities laws and illegally raising approximately $14.6 million.

6. On September 23, the SEC charged the online adult entertainment platform Fantasy Market and its founders with illegally issuing an ICO.

Despite the SEC's increased regulatory efforts on illegal crypto financing, it has also attempted to open more compliant channels. In July of this year, the SEC approved two projects to publicly issue digital coins through the Reg A+ method. According to statistics, as of October 2018, the SEC has approved 39 STO projects.

As the application scope of Crypto Assets expands, global regulatory agencies are becoming increasingly cautious about this field. After Facebook announced the Libra project, countries have become more focused on the development of digital currencies. The emergence of Libra signifies that a large number of private investment institutions will enter the Crypto Assets field, which not only challenges the status of national sovereign currencies but will also impact the entire financial currency system, prompting regulators in various countries to accelerate their regulatory layout in the Crypto Assets sector.

Crypto Assets, as a special form of investment, have different regulatory approaches. Since the birth of Bitcoin in 2008, the development of the encryption industry is still in its early stages, and relevant regulations are continuously being explored and improved.