SEC Ruling on the DAO and ICO, Explained

4.

It’s hard to tell for now.

The report urges companies to register with the SEC. In some cases, if a token is not a security, but instead has an actual utility, the ICO may not have to register with the SEC then, since that would not necessarily be considered an “investment.”

Also, the registration can give more legitimacy for Blockchain companies. The SEC has strong regulations, so if the company is registered, it would mean it has serious intentions. Experts from the SEC are ready to analyze Blockchain projects and try to reduce the number of possible Ponzi schemes. In addition, it may decrease price leaps and scare off a lot of profiteers.

On the other hand, the number of startups can go down. Not all companies are capable of complying with the SEC rules. Despite a great idea, an experienced team, excellent planning, some projects can never see a light of day.

The question is will this decision affect the whole ICO market or just the US?

Follow Cointelegraph news for more updates on the issue.

Source: Cointelegraph