SEC Crypto Czar: Platforms Listing IEOs May Face Regulatory Trouble

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The United States Securities and Exchange Commission’s (SEC) Advisor for Digital Assets and Innovation Valerie Szczepanik said that platforms seeking to list initial exchange offering (IEO) tokens for a fee could find themselves in regulatory trouble. Szczepanik delivered her comments at the Consensus 2019 conference on May 13.Speaking on IEO, Szczepanik — also known as the commission’s “crypto czar” — argued that platforms seeking to list IEO tokens for a fee and attract buyers for an issuer are likely engaging in broker-dealer activity. Szczepanik said:“If they are not registered they will find themselves in trouble in the U.S., if they have a U.S. issuer or U.S. buyers, if they are operating on the U.S. market.”Szczepanik further mentioned the case of TokenLot last September, — a cryptocurrency broker-dealer lead by Lenny Kugel and Eli L. Lewitt that marketed itself an “ICO [initial coin offering] superstore” — and said that “it was…

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