SEC Remarks on International Virtual Currency Enforcement
On December 5, 2018, Steven Peikin, Co-Director of the Division of Enforcement at the U.S. Securities and Exchange Commission (“SEC”), gave a speech at the IOSCO/PIFS-Harvard Law School Global Certificate Program for Regulators of Securities Markets on the topic of international cooperation in the enforcement of the US securities laws. In his remarks, Mr. Peikin described the SEC’s recent enforcement activities related to cryptoassets and initial coin offerings (“ICOs), and the importance of international assistance in reaching ICO sponsors in foreign jurisdictions.
In his remarks, Mr. Peikin stated that the Division of Enforcement sees two separate types of securities law violations in the ICO space. “First, we see ICOs that meet the definition of a security, but are being sold, brokered, or traded to U.S. investors without complying with the registration requirements of the federal securities laws. Second, we see ICOs that appear to be outright frauds -where the issuers are using excitement around the cryptoasset space to simply rip off money from investors.” Mr. Peikin commented that international cooperation has been essential to the SECs enforcement efforts because the sponsors of ICOs are often located outside the United states.