Bitcoin and ICOs must be allowed to evolve

SEC chairman Jay Clayton and CFTC chairman J. Christopher Giancarlo have outlined their perception of cryptocurrencies and blockchain technology.

In prepared remarks for the Senate Banking Committee, the chairpersons said they recognised the promise of distributed ledger technology.

Both entities said they would work with state and federal regulators to combat fraud and abuse within the cryptocurrency ecosystem, while allowing legitimate projects to flourish under the protection of regulation.

Clayton also asserted that most ICOs are classified as securities, and that investors are entitled to the benefits of securities laws.

“When investors are offered and sold securities, they are entitled to the benefits of state and federal securities laws,” said Clayton.

“With the proper balance of sound policy, regulatory oversight, and private sector innovation, new technologies will allow American markets to evolve in responsible ways.”