SEC Takes Action on These Altcoin Projects: Blocking!

On Wednesday, November 10, the US Securities and Exchange Commission (SEC) blocked registration of two altcoin projects submitted by Wyoming-based American Cryptofed. The securities regulator accused the company of providing misleading information to investors in its filings.

SEC makes its decision on 2 altcoin projects

In the filing, Wyoming-based American Cryptofed said its mission is to “create and maintain a monetary system with zero inflation, zero deflation, and zero transaction costs.” The organization also added that Ducat tokens protect against inflation through an algorithm that creates and destroys Ducats. In the filing, American Cryptofed suggested that Ducat be registered as securities along with the accompanying Locke token. However, Cryptofed said it wants to register them as “service tokens” rather than securities.

However, the US SEC noted that the American Cryptofed failed to report the necessary information about the two tokens. Additionally, the Wyoming-based organization did not present its “business, management and financial condition, including audited financial statements.” The SEC said it will order administrative action to determine any appropriate action necessary for investor protection. The regulator said it will decide to refuse or suspend the registration date for Ducat and Locke tokens.

The latest development shows that the US SEC continues to take a tough stance on crypto offerings taking place in the country. cryptocoin.com As we have also reported, SEC Chairman Gary Gensler said that they will take a closer look at the developments in the rapidly expanding crypto market. The SEC Chairman has previously called the crypto world the “Wild West” full of fraud and investor risk.

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