Palley April 4,9: If a digital wallet is involved, what happens if I lose the key? Rather, the token first was determined to be a security. Conversely, in the case of a token that the SEC determines not to be a security, such as present-day Ethereum or Bitcoin, it would seem that a token give-away may not in fact necessarily be a sale of securities. Munchee is a crazy ICO. But there are some hints. While this chapter attempts to provide a comprehensive view of the United States securities law guidance concerning digital tokens, this chapter does not exhaustively describe developments within the space. Will and can privacy coins be banned? CoinDesk is seeking submissions for our in Review. Your invested funds may quickly travel coinbase business account rent bitcoin referrals without your knowledge. The French Data Protection Authority DPAmembers of the EU Parliament and the EU Blockchain Observatory and Forum, are among the few governmental actors that have publicly acknowledged the tensions between blockchain and the GDPR, in particular the rules around the right to erasure, right to rectification and the principle of data minimization. I also read the footnotes. Launched from Singapore, the Blockchain Capital token sale is believed by many to be the first self-described security token offering. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the bitcoin agents in serbia are held bitcoins taxable of individual income for the other years. Where is the enterprise located?
Open blockchain tokens-exemptions, H. Buterin, Vitalik, Mastercoin: Unlike traditional securities, such as equity or debt, many tokens had — and, in fact, were intentionally designed to have — consumptive uses, entitling the holder to purchase goods or services or granting access rights to a blockchain platform or decentralised application. While groundbreaking in its assertion that certain consumptive tokens sold pursuant to an initial token sale might someday morph into non-securities, the Hinman Speech did not provide a clear roadmap pursuant to which token sellers, other market participants and their lawyers could objectively identify a consumptive token that was sufficiently decentralised as to no longer be a security, or how a token that initially may have been expressly issued as a security might extricate itself from securities law requirements, including any ongoing reporting requirements. I encourage anyone that has questions on a particular SAFT structure to consult with knowledgeable securities counsel or the staff. While this objectively may have been a true statement, the SEC said that it gave potential purchasers an expectation of an increase in value of their investments. While providing useful guidance concerning token give-aways, the Tomahawk Order raises at least one thorny related question: Conversely, in the case of a token that the SEC determines not to be a security, such as present-day Ethereum or Bitcoin, it would seem that a token give-away may not in fact necessarily be a sale of securities. They are not.
Part 3: Not to get too deep into legal weeds, but some critics have pounced on this by suggesting that the SEC wrongly gives short shrift to the common enterprise element of the Howey test. Who will be responsible for refunding my investment if something goes wrong? In that regard, is the instrument marketed and sold to the general public instead of to potential users of the network for a price that reasonably correlates with the market value of the good or service in the network? Code and the Code of Federal Regulations. Post-Munchee, many responsible lawyers took the position that the window for determining which initial token sales to U. At its base, the Regulation S exemption may be an acknowledgment that U. While providing useful guidance concerning token give-aways, the Tomahawk Order raises at least one thorny related question: Munchee Order, supra n. Many investors lack the sophistication, experience, savings where is the zcash taken transaction fee from free monero or income level to appreciate the risks inherent in investments in securities, or to bear the risk of a failed investment. I also encourage market participants and their advisers to engage with the SEC staff to aid in their analysis under the securities laws. Flowback issues: Some digital tokens may simply represent data points in a larger data structure. All of the relevant facts and circumstances are considered can you mine bitcoin at home bitcoin mining average profit making that determination. Joiner Leasing Corp. By autumnthe Howey test was being quoted ad nauseum at cocktail parties by lawyers, technologists and investors alike. Whether driven by well-intentioned technologists, financial professionals or scammers, burgeoning technological capabilities and the ability to build and leverage network effects have frequently outpaced legal understanding and compliance. About Us Contact Us Partners. For purposes of this chapter, we generally will not consider U. Part 1:
Typically these offerings involve the opportunity for individual investors to exchange currency such as U. I also caution market participants against promoting or touting the offer and sale of coins without first determining whether the securities laws apply to those actions. A Token of Appreciation51 Nos. Nothing in this chapter is intended to be, and nothing should be relied upon as, legal advice or investment advice. Are independent actors setting the price or is the promoter supporting the secondary market for the asset or otherwise influencing trading? A key question for all ICO market participants: See Crea, Robert M. The Hinman Speech was striking because it addressed head-on a token-related situation that was neither a scam, nor an obvious sale of securities. How, if at all, will courts and regulators distinguish between the role of the code writer, deployer of the code, and platform operator? Nakamoto, Satoshi, Bitcoin: A number of proposed solutions aayush jindal ethereum bitcoin nodes visualization GDPR compliance exist, such as zero-knowledge proofs and destruction of private keys, but it can my ether wallet hold bitcoin bfg bitcoin unclear whether they constitute methods of erasure or anonymization. That consideration best pool to mine litecoin best profitable genesis mining cloud beyond the scope of this chapter. How can multiple people mine bitcoin when will china ban bitcoin agree to the Terms of Service and Privacy Policy. To bitstamp or coinbase reddit armory bitcoin lawyers in the crypto space, this seemed to be a more appropriate and consistent method of determining whether a token sale was a sale of securities. This investor educational outreach continues in Some key questions that remain are: About Us Contact Us Partners. Are the trading markets fair? Often, those traditional investors had little interest in actually using the purchased tokens, or purchased or pre-purchased tokens in a quantity that such investors were unlikely to use.
This statement is not, and should not be taken as, a definitive discussion of applicable law, all the relevant risks with respect to these products, or a statement of my position on any particular product. Summarizing complexities and pitfalls in analyzing the electricity demand of new information technology, focusing on Bitcoin, the mostly widely used cryptocurrency. Shoehorning such tokens into a rigid U. The Munchee Order was notable because it reportedly was the first time that the SEC had stopped a token sale without any allegations of fraud. For example, if the housing unit is offered with a management contract or other services, it can be a security. I also caution market participants against promoting or touting the offer and sale of coins without first determining whether the securities laws apply to those actions. The DAO Report, supra n. How do you regulate the trading of privacy coins on these platforms? Considerations for Main Street Investors A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation.
What about sales of Ethereum? The native token of Ethereum was also purchased in the secondary market by many who hoped how to raise fee on electrum get transaction id from coinbase it would increase in value. How, if at all, will courts and regulators distinguish between the role of the code writer, deployer of the code, and platform operator? Sign In. Understanding the story of The DAO is important for multiple reasons. How can the wide range of regulatory responses from different nations within these international organizations be reconciled? If you choose to invest in these products, please ask questions and demand clear answers. Sign In. Statement on Cryptocurrencies and Initial Coin Offerings. The centralized-decentralized identity crisis View Article.
See id. See theSecurities Law Framework, supra n. Horner, Timothy L. In doing so, however, Hinman did not say that the initial Ethereum Foundation crowdfund, of the token now known as Ethereum Classic, had not been a sale of securities. Will regulators around the world follow the U. On a daily basis, The Block Genesis will feature the best research, investigative reporting, analysis, company digests, op-eds, and interviews. In March , the Wyoming Blockchain Coalition, led by Caitlin Long and Wyoming House Representative Tyler Lindholm, 65 among others, celebrated the successful passage by the State of Wyoming of five popular new blockchain-related laws, including House Bill 70, 66 which exempted from Wyoming state securities and money transmitters laws a category of consumptive tokens. Regulators are Looking at Cryptocurrency Jan. Ethereum was also accepted as payment by numerous token generators, including The DAO, in their token offerings. We have issued investor alerts, bulletins and statements on initial coin offerings and cryptocurrency-related investments, including with respect to the marketing of certain offerings and investments by celebrities and others. Haan, supra n. Templum and tZERO are among those that are trying to provide platforms for trading security tokens. The author is beyond grateful to Gregory Fullerton Klayman and Lubos Kuzar for their priceless support always. At its base, the Regulation S exemption may be an acknowledgment that U. As a result, there is now a discoverable trail of the initial transaction which would not have existed had it been conducted off-exchange.
On its face, the answer is no. See id. Rather than representing fungible contractual rights or claims, such as the right to receive dividends or a residual claim on the assets of a corporation, in the case of stock, or the right to payments of principal or interest in the case of debt instruments, they are particularized digital assets, each immutably tied to a specific cryptographic key. Are the tokens available in increments that correlate with a consumptive versus investment intent? That consideration is beyond the scope of this chapter. Flowback issues: This material is intended to give an indication of legal issues upon which you may need advice. These offerings can take many different forms, and the rights and interests a coin is purported to provide the holder can vary widely. However, while informative, and while it confirmed the views of many responsible securities lawyers, 27 The DAO Report left many questions unanswered. Munchee is a crazy ICO. The Need for a Federal Alternative to State Money Transmission Licensing A plan for policymakers to clear one of the biggest obstacles to financial innovation. A list of sample questions that may be helpful is attached. Are independent actors setting the price or is the promoter supporting the secondary market for the asset or otherwise influencing trading?
Turner Enterprises, Inc. The Case for Wyomingcoindesk January 27,available at https: Have they been paid to promote the product? Popper, Nathaniel, Subpoenas Signal S. Who is issuing and sponsoring the product, what are their backgrounds, and have they provided a full and complete description of the product? In contrast, many token offerings appear to have gone beyond this construct and are more analogous to dual mining coins e62620 v4 hashrate in a yet-to-be-built publishing house with the authors, books and distribution networks all to come. Our mission is to build a better understanding of these technologies and to promote a regulatory climate that preserves the freedom to innovate using permissionless blockchain technologies. The MUN Token white paper contained a flow-chart illustration showing that as market adoption increased, the value of the MUN Token was likely to how pay with ledger nano s ledger nano s 2fs. As a result, there is now a discoverable trail of the initial transaction which bitcoin computer build san cryptocurrency exchange not have existed had it been conducted off-exchange.
While the SAFT framework continues to be a lightning rod for strong opinions, and ongoing debate ensues regarding whether the overall SAFT model is, or should be, dead 35 or alive, 36 one of the underlying themes raised in the SAFT white paper — the importance of token functionality to the securities law analysis — appears to have been validated by certain regulators. It is difficult to prove a negative. However, digital tokens can also represent units of value, which may make them look more like commodities; they can function as property records or warehouse receipts; they can entitle owners target accept bitcoin how to buy xrp on bitcoin the right to use a software system, which makes them look more like licenses. Open Matters: Celebrity Endorsements, Investor. The Latest. Arguably, if Ethereum were determined to be a sells to fiat not showing on cointracking from coinbase coinbase asks for personal information then, would that help protect those dash hashflare mining review dash mining on gpu investors whom U. Even once security token platforms, such as tZERO and Templum, are capable of permitting secondary market sales of security tokens, aspects of U. While crypto thought-leaders, regulators and others in the token sale space grapple with the circumstances under which a security token may in the future evolve from a security to a non-security, token sellers that wish to affirmatively issue and sell their tokens as securities in compliance with U. It is not financial sophistication that is needed to understand these assets but rather technological sophistication and [ Tokens and offerings that incorporate features and marketing efforts that emphasize the potential for profits based on the entrepreneurial or managerial efforts of others continue to contain the hallmarks of a security under U. Unfortunately, as noted earlier in this chapter, opting into the securities law framework 89 may be an imperfect fit at best for token sellers, particularly in the case of tokens that have a consumptive use and have not been structured to resemble traditional debt or equity securities.
Under Rule of Regulation D, two exemptions from registration are available, without any limitation on the amount of money raised. If you read the document you will see that the title itself has a footnote, which is extremely like something that was written by a bunch of lawyers. Remarks before the Medici Conference May 2, , available at https: And regulating these transactions as securities transactions makes sense. The intensification of ICO activity in and saw a concomitant rise in private securities litigation against ICO issuers and promoters, as well as regulatory enforcement activity including, notably, by the SEC. In other words, with limited exceptions, utility tokens sold to U. Finally, it explores some of the key unanswered legal questions being wrestled with by market participants, their counsel and regulators alike. When advising clients, designing products and engaging in transactions, market participants and their advisers should thoughtfully consider our laws, regulations and guidance, as well as our principles-based securities law framework, which has served us well in the face of new developments for more than 80 years. The Need for a Federal Alternative to State Money Transmission Licensing A plan for policymakers to clear one of the biggest obstacles to financial innovation. Coinciding with the substantial growth in cryptocurrencies, companies and individuals increasingly have been using initial coin offerings to raise capital for their businesses and projects. However, the growing popularity of token sales and interest by traditional accredited investors, including VC funds, high-net-worth individuals, and certain family offices, in purchasing or pre-purchasing digital tokens sometimes for a deep discount and little to no lockup appeared in some ways at odds with the assertion that a given token was being sold other than as an investment. In turn, many adopted the conservative view that any initial token sale to U. Twitter Facebook LinkedIn Link. The Framework also addresses the question of the circumstances under which something that was previously sold as a security should be reevaluated at the time of later offers or sales? We use cookies to maximise functionality and improve your experience. Searching for solutions By autumn , the Howey test was being quoted ad nauseum at cocktail parties by lawyers, technologists and investors alike. A Token of Appreciation , 51 Nos. Many unregulated exchanges did not want to register as such, and some therefore attempted to restrict access by U. The author is beyond grateful to Gregory Fullerton Klayman and Lubos Kuzar for their priceless support always. The most famous, or infamous, token sale of , The DAO, now stands as a cautionary example of how not to conduct a token sale.
In doing so, the SEC applied the so-called Howey test, an bitcoin foundation canada intel core i5 bitcoin mining year-old, four-prong, facts-and-circumstances test that asks whether there has been i an investment of money, ii in a common enterprise, iii with a reasonable expectation of profit, iv with such profit being solely or primarily based on the managerial or entrepreneurial efforts of. For a discussion of Regulation D in greater detail, see infra Part 3: Why go to the trouble of using a ethereum wallet looking for peers ledger bitcoin cash chrome at all? Have an opinionated take on gtx 1070 hashrate monero what is going on with dash coin It is not financial sophistication that is needed to understand these assets but rather technological sophistication and [ Join The Block Genesis Now. If a digital wallet is involved, what happens if I lose the key? On its face, the answer is no. The SEC will disregard form and focus on substance when it comes to sales of digital tokens. Current challenges with security tokens. Many in the community drew a distinction between those tokens that were being sold for consumptive use albeit usually at an uncertain future date and those that were being sold for investment purposes. Generally speaking, these laws provide that investors deserve to know what they are investing in and the relevant risks involved. In what was probably not a coincidence, the SEC also dropped a no-action letter response today in connection with a digital asset offering and it serves as a nice bookend.
Is the product legal? Are there built-in incentives that compel using the tokens promptly on the network, such as having the tokens degrade in value over time, or can the tokens be held for extended periods for investment? SEC staff express openness to technological innovations. Post-Munchee, many responsible lawyers took the position that the window for determining which initial token sales to U. Twitter Facebook LinkedIn Link. Join The Block Genesis Now. Understanding the story of The DAO is important for multiple reasons. What legal protections may or may not be available in the event of fraud, a hack, malware, or a downturn in business prospects? Is there a person or group that has sponsored or promoted the creation and sale of the digital asset, the efforts of whom play a significant role in the development and maintenance of the asset and its potential increase in value? Turner Enterprises, Inc. The MUN Token white paper contained a flow-chart illustration showing that as market adoption increased, the value of the MUN Token was likely to increase. I am confident that developments in fintech will help facilitate capital formation and provide promising investment opportunities for institutional and Main Street investors alike. Considerations for Main Street Investors A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation. In addition, entities such as [certain] banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Are compliance obligations triggered when the developers of a new decentralized token protocol sell them to U. Finally, it explores some of the key unanswered legal questions being wrestled with by market participants, their counsel and regulators alike. Load More. Please see our terms and conditions page for further details.
What is Known and What Remains Ambiguous Are compliance obligations triggered when the developers of a new decentralized token protocol sell them to U. For example, two regulated crypto exchanges, Gemini and Coinbase, recently began offering the trading of zcash. The content of this website is for general information purposes only and does not purport to provide comprehensive full legal or other advice. A list of sample questions that may be helpful is attached. The domino effects would be significant for the nascent and burgeoning cryptocurrency community. The Block Genesis consists of our most in-depth, timely and impactful pieces, giving you an informational edge over the entire financial and technology industry. But, what they all have in common is this: As noted previously, The DAO was a virtual venture fund. Judge says it sounds like a security anyway Read more. And to what avail? Will international regulators work together? Please also see the SEC investor bulletins, alerts and statements referenced in note 3 of this statement. On its face, the answer is no. Turner Enterprises, Inc. About Us Contact Us Partners. Another way of reading is:
Twitter Facebook LinkedIn Link. That consideration is beyond the scope of this chapter. Current challenges with security tokens. Director, Digital Asset Transactions: Just as purchasers of Ethereum may be unlikely to look to the Ethereum Foundation to carry out managerial or entrepreneurial efforts concerning Ether, Hinman indicated that it may be possible for certain tokens sold to U. The advent of blockchain technology, with all of its promise for disrupting existing business, economic, and even governmental and social models, more immediately has disrupted traditional models of capital markets activity, as well as the sleep of many a securities regulator. Notwithstanding such terminology, U. Templum and tZERO are among those that are trying to provide platforms for trading security tokens. Fraud and manipulation involving bitcoin traded in interstate commerce are appropriately within the purview of the CFTC, as is the regulation of commodity futures tied directly to bitcoin. Initial Coin Offerings July 25,available at https: The SEC also indicated that, because The DAO Tokens how to sell automatically on coinbase find bitcoin transaction securities, the platforms on which The DAO Tokens were bought, sold or traded were securities exchanges, which meant that The DAO platform needed to register as a national securities exchange, or avail itself of an exemption from registration, such as by registering as an alternative trading system or broker-dealer. Research Reports. The DAO July 25,available at https:
Two of the arguably more favored, and potentially less expensive, exemptions from registration under U. One possible solution is to programmatically limit the number of holders or digital wallets within the blockchain protocol. Is there trading data? Even as U. Based in Washington, D. Ethereum was also accepted as payment by numerous token generators, including The DAO, in their token offerings. Whether that assertion proves correct with respect to any digital asset that is labeled as a cryptocurrency will depend on the characteristics and use of that particular asset. If a blockchain is used, is the blockchain can my cpu mine can u mix gpu for mining and public? In other words, with limited exceptions, utility tokens sold to U. On this and other points where the application of expertise and judgment is expected, I believe that gatekeepers and others, including securities lawyers, accountants and consultants, need to focus on their responsibilities. Notwithstanding such terminology, U. Statement on Cryptocurrencies and Initial Coin Offerings. I also caution market participants against promoting or touting the offer and sale of coins without hp proliant dl360 mining hashrate hw antminer miners status page determining whether the securities laws apply to those actions. The rest of the memorandum runs through a Howey analysis, focusing mostly on the third prong — whether the purchaser has a reasonable expectation of profits or other financial returns derived from the efforts of. Legal On crypto legal frameworks and no-action letters by Stephen D. And alternatively, as noted above, if the token itself were deemed not to be a security, perhaps one may not need to assess the work vs. Fintech Guide, available at https: To help guide this facts-and-circumstances analysis, Hinman suggested a non-exhaustive list of considerations:
For a discussion of Regulation D in greater detail, see infra Part 3: Prudent issuers will consider a range of legal matters separate and apart from securities law compliance, including to name but a few compliance with Bank Secrecy Act and anti-money laundering requirements, compliance with money transmittal law and regulation, secure and legally compliant custodianship, and compliance with any state licensure requirements. Both Tomahawk and the early internet cases focused on an established security e. In the months after The DAO Report was released, the SEC announced 43 its new Cyber Unit focused on the token sale space, cracked down on ICO-related scams and frauds 44 and engaged in educational outreach to potential token purchasers. Chairman Jay Clayton. Rather, the token first was determined to be a security. Both exchanges now allow withdrawals of zcash to be made to transparent addresses only, as opposed to shielded or private addresses. They are not legal advice. I was asked on Bloomberg TV yesterday if this is essentially the nail in the coffin of ICO abuse or if they will come roaring back. It really did matter — and it mattered a lot. Has the offering been structured to comply with the securities laws and, if not, what implications will that have for the stability of the enterprise and the value of my investment? Industry groups, such as the Wall Street Blockchain Alliance Legal Working Group and Wharton Reg Tech, among others, were wrestling actively with the application of Howey and its progeny on token sales, trying to develop a common view of situations in which an initial token sale was unlikely to be a sale of securities.
A Primer for Policymakers This plain language guide describes how the digital currency works and addresses many of the common misconceptions about it. Please also recognize that these markets span national borders and that significant trading may occur on systems and platforms outside the United States. Regulators are Looking at Cryptocurrency Jan. Second, brokers, dealers and other market participants that allow for payments in cryptocurrencies, allow customers to purchase cryptocurrencies on margin, or otherwise use cryptocurrencies to facilitate securities transactions should exercise particular caution, including ensuring that their cryptocurrency activities are not undermining their anti-money laundering and know-your-customer obligations. Current challenges with security tokens. Using historical market data, Slock. Will developers be held responsible for violations of law? They also present investors and other market participants with many questions, some new and some old but in a new formincluding, to list just a few:. In contrast, many token offerings appear to have gone beyond this construct and are more analogous to interests in a yet-to-be-built publishing house with the authors, books and distribution networks all to come. Companies that elect to comply with Rule b or c are required to file an electronic notice Form D with the SEC. The Block Genesis is the first and last word on the world of digital assets, cryptocurrencies, and blockchain. However, long before the U. In Marchthe Wyoming Prediction markets bitcoin transfer coinbase to poloniex ethereum time Coalition, led by Caitlin Long and Wyoming House Representative Tyler Lindholm, 65 among others, celebrated the successful passage by the State of Wyoming of five popular new blockchain-related laws, including House Bill 70, 66 which exempted from Wyoming state securities and money transmitters laws a category of consumptive tokens. Dupont, supra n. On this and other points where the application of expertise and judgment is expected, I reddit best cryptocurrency sapphire 580 4gb hashrate that gatekeepers and others, including securities lawyers, accountants and consultants, need to focus on their responsibilities.
What legal protections may or may not be available in the event of fraud, a hack, malware, or a downturn in business prospects? However, below is a non-exclusive list of issues for consideration, which relate to some of the more popular exemptions from registration under U. Stated differently, have the things that made it a security initially gone away? Considerations for Main Street Investors A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation. Unfortunately, even if one were to acknowledge that a given token sale was a sale of securities, no alternative trading systems then existed on which such tokens could be traded. Is there a person or group that has sponsored or promoted the creation and sale of the digital asset, the efforts of whom play a significant role in the development and maintenance of the asset and its potential increase in value? Anyway, perhaps in the hope of causing Crypto Twitter to literally explode from excitement, the SEC also dropped a positive response to a no-action letter request today. Have an opinionated take on ? Privacy Policy. Importantly, Hinman drew a nuanced distinction between a digital token itself, and the way that such token is sold, stating:. Alternatively, each string of numbers could entitle the holder to entrance to a particular members-only event, with the lowest number being the first in line. Not bitcoin though. Statement on Cryptocurrencies and Initial Coin Offerings. The SEC delivered some of its most important regulatory guidance of through conferences, interviews and personal statements.
In what was probably not a coincidence, the SEC also dropped a no-action letter response today in connection with a digital asset offering and it serves as a nice bookend. In March , the Wyoming Blockchain Coalition, led by Caitlin Long and Wyoming House Representative Tyler Lindholm, 65 among others, celebrated the successful passage by the State of Wyoming of five popular new blockchain-related laws, including House Bill 70, 66 which exempted from Wyoming state securities and money transmitters laws a category of consumptive tokens. But there are some hints. A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation. Templum and tZERO are among those that are trying to provide platforms for trading security tokens. Is the asset marketed and distributed to potential users or the general public? If I do have legal rights, can I effectively enforce them and will there be adequate funds to compensate me if my rights are violated? For example, two regulated crypto exchanges, Gemini and Coinbase, recently began offering the trading of zcash. Have an opinionated take on ? Considerations for Main Street Investors A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation.