US Securities And Exchange Commission Calls Crypto World A Wild West And Full Of Deception
JAKARTA – Relations between the cryptocurrency industry and US stock market regulators are increasingly tense. Especially after financial regulators in the United States are now taking a more aggressive position under the leadership of the Democratic Party.
The chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, appears to have taken a broader view of whether crypto assets are under SEC supply. He said that the SEC is currently examining cryptocurrencies in several areas and described the crypto world as a “Wild West” full of fraud and investor risk.
The US securities regulator on Wednesday, November 10, also suspended registration for two digital tokens offered by Wyoming-based American Cryptofed DAO LLC. The SEC commission accused the company of providing misleading information to investors in its investment filings.
The US Securities and Exchange Commission (SEC) said that American Cryptofed "filed an incomplete and misleading form" when it attempted to list the tokens, known as "Ducat" and "Locke", as equity securities. The disclosure did not contain the necessary information about the token and the company, and contained a materially misleading statement, the SEC said.
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The SEC alleges the company forms leave out the necessary information about the company's business, management, and financial condition, among other omissions, and also provides inconsistent statements about whether the tokens are securities.
Cryptofed America's Chief Executive Officer, Marian Orr, disputed the SEC's view that the tokens were securities and said their company had tried to discuss the matter with the SEC when the agency refused to respond to the company's denials last October.
"The 'disadvantage' the SEC is referring to is the lack of attributes attached to the securities", it said in a statement. "This is an attribute that the two tokens (Locke and Ducat) of the decentralized blockchain-based CryptoFed DAO monetary system will never have".