Cardano founder on SEC and how EOS can face backlash from regulators
Cardano founder, Charles Hoskinson, in a recent press conference spoke about US’ Securities and Exchange Commission (SEC) and how EOS can face significant backlash from the regulators.
Hoskinson believes that the problem would be related to their $4bn ICO, which the IOHK leader described as “egregious.” According to him, SEC will bring strict measures against Block.One the way EOS Initial Coin Offering was carried out, Cryptobriefing reported.
While speaking at a press conference in Edinburgh, Hoskinson said, “I can’t imagine how they’re [Block.One] not going to have some sort of issue with the SEC.” He further added that the ICO had various fundamental faults and therefore calling attention to the huge amount that they rose in a year.
He said that the SEC “needed” to take some action and mentioned that “it was egregious to the core,” Hoskinson added. It is to be noted that Blockchain startups raised over $5bn through ICOs last year. And, EOS which hosted around a year-long crowdsale managed to raise over $4bn and finally ended it on June 1 this year. It was the largest ICO in history.
According to Hoskinson, SEC is getting prepared and they’ll in the process they’ll prioritize which projects to target. In that case, EOS can become a clear target for regulatory action only due to its crowd sale. Though U.S. citizens were stopped from participating in the ICO, EOS could be bought in secondary markets without KYC and Block.One might be still under the SEC jurisdiction.
Recently, Airfox and Paragon were found guilty of not registering their ICOs and did not qualify for an exemption to registration requirements. At the time, both companies agreed to repay its investors, register the tokens as securities, file periodic reports with the SEC and pay penalties.
Image via Shutterstock