Updated Jan 25, 2018

SEC chairman talks cryptocurrencies

Clayton speaks at Stanford University's Rock Center for Corporate Governance. Photo: Justin Sullivan/Getty Images

"What I see happening in the ICO market today is ‘let me have all of the disclosure freedom of a private placement and all of the secondary activity and ability to market this of a public offering.' We decided in 1934: that [having both of these at once] led to a lot of problems," SEC Chairman Jay Clayton said on Wednesday evening at Stanford University.

Why it matters: With the boom in initial coin offerings and blockchain technology, it's not surprise that the U.S. Securities and Exchange Commission is watching the space closely, and is especially concerned with the lack of protections for investors.

More from his remarks:

  • "I think we can say that wherever the date is, it’s passed," he said when asked whether his commission has made ICO rules clear enough yet.
  • "There are a lot of protections in the way stock trades on exchanges... these platforms that you’re seeing where people are trading cryptocurrencies — there are none of these rules... The opportunity for price manipulation is at orders of magnitude.”
  • "Blockchain, distributed ledger tech — I don't think any of us think it's a fad ... it clearly has applications that are gonna add efficiencies." 
  • "If this market continues as it is, this will not be the last enforcement actions that we take," he said of the three ICOs the SEC has moved against so far.
  • "Some of the offerings that we’re seeing, if the lawyers are telling them it’s OK, they’re just plain wrong," he said. Clayton added that it's a possibility they will take action against lawyers knowingly giving advice to ICO issuers that is against current law.

Go deeper

U.S. coronavirus updates: Death toll nears 11,000

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

Recorded deaths from the novel coronavirus surpassed 10,900 in the U.S. early Tuesday, per Johns Hopkins data. More than 1,000 people in the U.S. have died of coronavirus-related conditions each day since April 1.

Why it matters: U.S. Surgeon General Jerome Adams said on Sunday this week will be "the hardest and saddest week of most Americans' lives" — calling it our "our Pearl Harbor, our 9/11 moment."

Go deeperArrowUpdated 8 mins ago - Health

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 11:30 p.m. ET: 1,347,803 — Total deaths: 74,807 — Total recoveries: 277,402Map.
  2. U.S.: Total confirmed cases as of 11:30 p.m. ET: 368,196 — Total deaths: 10,986 — Total recoveries: 19,828Map.
  3. Trump administration latest: President Trump's economic adviser Peter Navarro warned White House colleagues in late January the coronavirus could take over half a million American lives and cost close to $6 trillion, memos obtained by Axios show.
  4. 2020 update: Wisconsin Supreme Court blocks governor's attempt to delay in-person primary voting delayed until June.
  5. States latest: West Coast states send ventilators to New York and other states with more immediate need — Data suggest coronavirus curve may be flattening in New York, Gov. Andrew Cuomo said.
  6. World update: U.K. Prime Minister Boris Johnson moved to intensive care as coronavirus symptoms worsen.
  7. Stocks latest: The S&P 500 closed up 7% on Monday, while the Dow rose more than 1,500 points.
  8. What should I do? Pets, moving and personal health. Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Docs: Navarro memos warning mass death circulated West Wing in January

Image from a memo to President Trump

In late January, President Trump's economic adviser Peter Navarro warned his White House colleagues the novel coronavirus could take more than half a million American lives and cost close to $6 trillion, according to memos obtained by Axios.

  • By late February, Navarro was even more alarmed, and he warned his colleagues, in another memo, that up to two million Americans could die of the virus.

Driving the news: Navarro's grim estimates are set out in two memos — one dated Jan. 29 and addressed to the National Security Council, the other dated Feb. 23 and addressed to the president. The NSC circulated both memos around the White House and multiple agencies.