SEC Will Penalize This Altcoin Project!

Will the US Securities and Exchange Commission (SEC) penalize leading altcoin Ethereum for its unregistered ICO? According to one journalist, time will tell. Fox Business journalist Eleanor Terrett said that with the SEC claiming that all crypto assets other than Bitcoin fall under its jurisdiction, the agency has until 2024 to go after Ethereum for its unregistered 2014 ICO. Here are the details…

Terrett: SEC may penalize leading altcoin ETH

Prior to that, the SEC had a five-year statute of limitations to go after companies believed to be offering unregistered securities offerings in the United States, according to Terrett. Based on this, the period when the SEC was supposed to crash Ethereum is “technically over” in 2019. However, the United States Congress recently gave the U.S. Securities and Exchange Commission a 10-year deadline if it seeks reimbursement of profits illegally obtained through violation of securities laws.

Notably, Congress’ 10-year time limit to the SEC has extended until 2024, when the agency can “legally” penalize Ethereum for its unregistered bid. Terrett said, “The SEC is legally required to penalize Ethereum for its unregistered ICO by 2024. Will it happen? Time will tell,” he said.

SEC cracks down on unregistered ICOs

It is quite remarkable that the SEC has cracked down on crypto-related companies believed to be conducting unregistered ICOs in the US. This week, the SEC filed a lawsuit against Dragonchain for offering an unregistered Initial Coin Offering that saw it raise $16.5 million in 2016. In the filings, the SEC is seeking reimbursement of proceeds from the offer and fines for violating US securities law. Apart from Dragonchain, in the past the SEC has also accused other top firms, including Ripple and Telegram.

While other companies opted to settle with the SEC, Ripple held its ground by maintaining that its 2013 ICO did not violate US securities laws. Ripple’s determination to prove that its altcoin project XRP is not a security has drawn a lot of attention to Ethereum. Many wondered why the SEC didn’t blame ETH for the same crime that Ripple claims to have committed.

SEC Chairman Gary Gensler made several statements.

cryptocoin.com As we reported, SEC chairman Gary Gensler recently said that the institution only sees Bitcoin outside of its jurisdiction. This implies that all altcoins, including ETH, are considered securities. William Hinman, former director of the SEC’s Corporate Finance division, was a partner of Simpson Thatcher before he was appointed head of the commission’s Corporate Finance division.

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Simpson Thatcher is a member of the Enterprise Ethereum Alliance (EEA), a company dedicated to marketing Ethereum as an enterprise solution. Empower Oversight recently exposed the conflict of interest while Hinman headed the SEC’s Finance House. According to documents shared by Empower Oversight, Hinman held a series of meetings with Simpson Thatcher during his time in the SEC, ultimately declaring ETH non-secure in his 2018 speech.

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