Speaking at an event at Princeton University, SEC chairman Jay Clayton seems to be softening his position towards the ICO, Coindesk said. Responding to a questions from the audience whether all ICOs are fraudulent without exception, he said: “Not at all.”
According to Clayton, the measures his agency is taking in recent months should help, rather than hamper the development of the cryptocurrency industry.
“Is the approach taken in Washington by the SEC adversely affecting distributed ledger technology in other areas? My quick answer is that my hope is that it’s actually helping – because this technology is being used for fraud and to the extent that it’s being used for fraud, history shows that government comes down harshly on that technology later […] I think if we don’t stop the fraudsters, there is a serious risk that the regulatory pendulum – the regulatory actions will be so severe that they will restrict the capacity of this new security,” pointed Clayton.
According to Clayton, one of the issues that regulators see in this area is to attempt to classify the blockchain offer who spreading utility-tokens which would ostensibly free them from any kind of designation as a security.
“If I have a laundry token for washing my clothes, that’s not a security. But if I have a set of 10 laundry tokens and the laundromats are to be developed and those are offered to me as something I can use for the future and I’m buying them because I can sell them to next year’s incoming class, that’s a security,” Clayton explained.
This definition can evolve and change over time, he suggested.