The Securities and Exchange Commission might start looking into US-based cryptocurrency exchanges that have carried out IEOs. That could mean that Bittrex, KuCoin, Huobi, and Binance could all be in the spotlight here.
SEC Cracking Down Exchanges and IEOs?
In spite of not offering these products to Americans, but the fact that these cryptocurrency exchanges allow American customers to trade cryptocurrencies on their platform may be enough for the SEC to crack down on them.
The SEC is claiming that cryptocurrency exchanges may be operating as unauthorized securities declared under US securities laws if they take a fee for facilitating that token sale or are offering to bring buyers in for the issuers of the tokens which basically describes that an IEO model is.
Assuming that the SEC doesn’t nuke the cryptocurrency markets by making exchanges cancel all the IEOs, 2019 seems to be gearing up for a mass influx of STOs and IEOs when we see the number of ICOs dropping off substantially with estimates putting the number of STOs to double by the end of the year and the number of IEOs to triple by the end of the year. This is due to the fact that Initial Exchange Offerings are generally much better for the company that is offering the token.
What do you feel about this? Do you think that its a good thing that the SEC is cracking down on the exchanges and the IEOs? Tell us in the comments section.