Dozens of cryptocurrency startups under investigation, says SEC

The US Securities and Exchange Commission (SEC) has confirmed that ‘dozens’ of startups are currently being investigated for violations of federal securities regulations.

These ICOs have long been under scrutiny by the SEC, reports CCN, and it was reported earlier this month that up to 80 subpoenas had been issues to ICO operators and advisers.

Stephanie Avakian, co-director of the SEC’s enforcement division, told Bloomberg Law: “We are very active, and I would just expect to see more and more… We’re doing obviously a lot in the crypto space, and we’re seeing a lot in the crypto space.”

Many emergency asset freezes and trading suspensions have happened as a result of recent SEC work, nad the commission released a statement on March 7 restating that crypto trading platforms will need to register as exchanges.

“A number of these platforms provide a mechanism for trading assets that meet the definition of a ‘security’ under the federal securities laws,” it said. “If a platform offers trading of digital assets that are securities and operates as an “exchange,” as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”