Coindesk Logo

Token Summit Creator: SEC ICO Guidance a 'Breath of Fresh Air'

Token Summit Creator: SEC ICO Guidance a 'Breath of Fresh Air'

Token Summit Creator: SEC ICO Guidance a 'Breath of Fresh Air'

A prominent figure in the movement to encourage blockchain tokens as a funding method has lauded new SEC guidance for the industry.

A prominent figure in the movement to encourage blockchain tokens as a funding method has lauded new SEC guidance for the industry.

A prominent figure in the movement to encourage blockchain tokens as a funding method has lauded new SEC guidance for the industry.

AccessTimeIconJul 25, 2017, 11:30 PM
Updated Aug 18, 2021, 6:32 PM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

It might not be the first reaction you'd expect from one of the people most responsible for popularizing the use of cryptographic tokens as an investment tool.

However, the founder of the Token Summit conference that helped bring the concept to the fore of the industry believes new comments from the US Securities and Exchange Commission will do much to encourage the sector to improve. Issued today, the SEC found that tokens issued by an ethereum project called The DAO were securities, setting off shockwaves in an industry that had long been expecting such news.

Still, investor and author William Mougayar believes that the guidance offered will help "elevate the standards" of entrepreneurs seeking to leverage the funding model.

Citing recent commentary in which he has spoke out about the adverse effects of quickening growth in the sector, Mougayar called the finding that some ICOs may meet the definition of a security "well balanced" and a "breath of fresh air."

Mougayar told CoinDesk:

"The SEC poured some cold water on two key aspects that were weak links in the ICO value chain. One, the overly promotional aspects in communicating ICOs, and two, the lack of transparency in disclosing essential and non-obtuse information for consumers."

As such, Mougayar said that the published guidance from the SEC, which observers cited as rare in the scope and coordination, should do much to help the industry improve as it seeks mainstream users.

He concluded:

"The SEC position re-enforces the need for increased discipline in ICO practices."

William Mougayar image via CoinDesk Archives 

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.