The crypto winter is still upon us and the authority bodies have come to show the industry who is in charge. Just recently, the SEC have been relentless on their mission to clamp down on fraudulent activities such as fraud and of course those running fraudulent Initial Coin Offerings (ICOs). Lawyer at one of the largest venture capital firms in Silicon Valley, Chen Pogoda recently spoke about what he thought was the current state of affairs of the SEC since their crackdown.

Mr. Pogda believes that the SEC are far from done as they are set to not only enforce regulations against those running fraudulent ICOs, but also from those who have refused to follow their guidelines. His words on the matter were, “Crypto is something that they can’t let go of or ignore. They’re not sleeping on it.” When asked what he thought would be the ultimate outcome, he quipped, “It’s going to get worse.”

The crypto winter that crept upon us has seen the prices of mainstream crypto coins such as Bitcoin, Ethereum, and Ripple drop drastically and the effects of the SEC’s unrelenting efforts rippling through the community. The most notable of the SEC’s announcements so far has been that of their fraudulent clampdown on ICOs with the development of a Strategic Hub for Innovation and Financial Technology (FinHub), which allows innovators to talk to senior SEC staff on a wide range of topics.

The SEC clampdown has started to make a viable impact on the number of fraudulent ICOs in the cryptocurrency industry as the number of announcements and cease-and-desists has increased in the past few months. Mr. Pogda's words come as no surprise as their efforts to bring the ICO industry under their authority will be a long and drawn-out process.

The SEC’s clampdown is just the beginning of the regulation of the cryptocurrency industry and many more regulations are to come in the future. Compared to other asset classes, cryptocurrency is still in its baby steps, so as the industry matures and the market sees more trading activity, the regulatory body could possibly go even further with their efforts to bring the industry under their wing.

Chen Pogoda, a lawyer from one of the biggest venture capital firms based in Silicon Valley, recently announced his insights on the current situation regarding the SEC’s relentless clampdown on fraudulent activities in the cryptocurrency industry. His predictions further confirm the belief that the SEC's actions are part of a long-term strategy for establishing authority in the industry as he predicted more harsher regulations in the future. Meanwhile, the number of ICO launches has already decreased as a result of the SEC's actions and are likely to further deplete as the SEC continues to enforce regulations in the space. With the development of FinHub, an initiative by the SEC to establish a dialogue between the authority bodies and crypto innovators, the blockchain world can rest assured that their efforts have the ultimate goal of strengthening the crypto industry



Other News from Today