Robert Jackson, the US Securities and Exchange Commission (SEC) commissioner, has been critical of the present condition of the ICO Sector. He believes that ICOs shall conform to the legal requirements when kept under securities legislation.
SEC Commissioner’s view on ICOs problems:
Mr. Robert Jackson expressed his opinion about the ICOs in an interview with CNBC. He stated that ICOs shall soon comply with the legal framework once it is positioned under the securities regulations.
As stated by Mr. Jackson, “Down the road, I think we will be thinking about ways to make those investments work consistent with our securities laws”. And he believes that making the ICOs work in accordance with the securities law shall prove beneficial for the investments.
Mr. Jackson shows traces of optimism when it comes to discussing the future of ICO sector. However, he distinctly points out that the present state of the ICOs reflects the condition of the wild west.
Mr. Jackson commented that it is hard to distinguish between a fraud and an investment in today’s times. He further stated that if one wants to know how the markets would be like if there wasn’t any securities laws and regulations, he/she should look into the ICO market.
All that the market is looking forward to is a balance between capital formation and an assurance of investor’s protection.
When Mr. Brad Sherman questioned whether ICOs could bring about a solution to the recent market downfall through an Initial Public Offerings (IPOs), Mr Bill Huizenga, a committee member of SEC stated, “in theory, there is a time when a coin may achieve a decentralized utility in the marketplace”. Mr. Sherman seems to find this contradictory as he believes IPOs are an appropriate alternative to the ICOs and a solution to the problems of real economy.