The SEC is looking closely at ICOs announcements by public companies according to Chairman Jay Clayton

In its opening remarks to the Securities Regulation Institute on Monday January 22, the SEC Chairman Jay Clayton took direct aim at firms advising ICOs and public companies announcing blockchain initiatives.

On professionals

For the Chairman, the securities market rely on the integrity of the professionals involved in the transactions such as securities lawyers, accountants, underwriters, and dealers. Particularly he points out the contradictions of lawyers assisting promoters in structuring offerings of products that have many of the key features of a securities offering while claiming the products are not securities.

The Chairman implies that many ICOs advised by professional lawyers are not complying with the security law when they should be. The Chairman makes clear that he instructed the SEC staff to look closely at the professional obligations of the U.S. securities bar.

Public companies trying to capitalize on the blockchain attention 

After the recent announcements of public companies such as Kodak on their shift toward blockchain technologies and the launch of an ICO, the Chairman makes clear that the SEC will closely investigate their projects. He points out potential securities law breach in the announcements by "not providing adequate disclosure to Main Street investors about those changes and the risks involved" and that any public offering will be looked closely.

This speech is aligned with the statements of the recent weeks by the SEC and CFTC rolling out enforcement after analytic statements in 2017.

Full speech : https://www.sec.gov/news/speech/speech-clayton-012218