SEC Speaks Out Against Creation of “Safe Haven” for ICOs

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SEC Commissioner Caroline Crenshaw has opposed calls for a “safe haven” that would protect initial coin offerings (ICOs) projects from being held accountable to the regulator.

She said:

“If there was a safe haven during the ICO boom in 2017 and 2018, I think the results for investors and markets would be even worse. ICOs and other digital asset offerings have raised billions, but most never delivered on their promises. Investors suffered losses.”

According to Crenshaw, instead of a “harbor,” a “bridge” is needed between the participants of the crypto industry and the watchdog. Then projects could better clarify regulatory compliance with the Commission.

“As with all new developments in the markets, digital assets, decentralized networks and the way users interact are raising new questions. If the company or its consultant is in this position, we are ready to work with them, but it is best to help if they take the initiative.”

In February 2020, SEC Commissioner Hester Peirce proposed a three-year regulatory vacation for token-selling startups.

In April 2021, she presented the second version of the Safe Harbor for ICO projects.

Pierce, who is known for her friendly attitude to the crypto industry, has previously stated NFT sales may violate securities laws. She also advised DeFi projects to consult with the SEC on this matter.