It looks like ICOs, shorthand for initial coin offerings, are about to undergo a lot more scrutiny.
The SEC has concluded that the digital currencies will be regulated as securities, meaning unregistered offerings could be subject to criminal punishment. The decision was announced on Tuesday.
To reach its findings, regulators evaluated an offering facilitated by “The DAO.” The report concluded, “that issuers of distributed ledger or blockchain technology-based securities must register offers and sales of such securities unless a valid exemption applies.” It warned that those “participating in unregistered offerings…