Feb 28, 2018

SEC reportedly subpoenas companies and advisers over ICOs

llustration: Rebecca Zisser / Axios 

The U.S. Securities and Exchange Commission has issued subpoenas and information requests to "scores" of companies and advisors involved with initial coin offerings (ICOs) and digital token sales, according to the Wall Street Journal.

Why this matters: After a series of warnings and a handful of enforcement actions against companies violating securities laws or committing fraud, the SEC is getting more aggressive in cracking down on the market. Last month, SEC Chairman Jay Clayton expressed concerns over securities lawyers giving misleading advice about token sales, suggesting that the commission could direct its enforcement efforts against them as well.

Go deeper: Clayton talks about ICOs at Stanford University.

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