Securities regulators are reportedly investigating in the U.S. numerous digital-asset projects. However, the cryptocurrency market seems unaffected, as virtual tokens are rising.
The majority of the cryptocurrencies strengthened, including Bitcoin that gained plus 3.2% reaching $10,873. According to Digital Assets 100 Small-Cap Index of MVIS CryptoCompare, not even the smaller tokens are affected by the scrutiny of Securities and Exchange Commission (SEC).
The smaller coins may be up as many of them don’t fall under the oversight of U.S. oversight. As the ICO Watch List website reports, about 80% of ICOs happen outside the U.S. Despite the warnings of SEC, the ICO funding is still surging. Investors have raised more than $3 billion so far in 2018. This amount equals to more than half of the entire amount raised in the previous entire year.
In July 2017, the SEC stated that we can consider some tokens sold in ICOs as securities. Last month, Chairman Jay Clayton told that the majority of the tokens he has observed are probably securities. However, the SEC has still only cracked down on a handful of projects.
For some investors, increasing SEC oversight is a positive thing. In an interview, this Wednesday, the vice president of trading and derivatives with Co. Randy Frederick & Charles Schwab said that institutions see improved regulation as a necessary condition before joining in, said in an interview Wednesday. He stated that as a brokerage company they are much more cautious regarding being involved until they know it has proper regulatory oversight, but currently, it doesn’t.
Stocks related to Blockchain are definitely not taking the news well
Overstock fall almost 10% and Riot Blockchain fall more than 4% as they are the most directly susceptible to regulation. In Thursday, Overstock confirmed SEC asked them for information about its planned ICO.