Past ICO (initial coin offering) organizers should be given the chance to remediate their illegal offerings, says a petition filed by Liquid M Capital. Liquid M Capital is an SEC registered fintech company and broker dealer acquired by Templum earlier this month.
The petition contains several direct responses to comments made by SEC chairman, Jay Clayton. During a Senate hearing, Clayton reiterated his belief that ICOs are essentially securities and should be treated as such.
"Every ICO I've seen is a security"
Clayton said: “Every ICO I’ve seen is a security.” He made this statement early on in the discussion and it largely set the tone for the rest of the hearing. By the end, the general feeling was that something needed to change.
At one stage, when asked how much of the $5.6 billion raised via ICOs during 2017 came from US investors, Clayton admitted he didn’t know.
"It’s hard to get a number on that because this has been conducted on largely an unregulated basis. But I imagine, Senator, a significant enough portion that we should be paying attention,” Clayton said.
The letter, signed by Christopher Pallotta, CEO of Templum, and Vincent Molinari, CEO of Liquid M, can be summarised by this recommendation, made to chairman Clayton:
“The SEC should allow issuers of lCOs that were conducted prior to guidance from the SEC to remediate their illegal offerings.”
Liquid M has a history of asking the SEC to clarify its rules on cryptocurrency-related matters. The SEC is yet to respond to the petition.
The full petition can be found here.