ICOs Cool Amid Regulatory Crackdown, Crypto Plunge

​Fenwick securities enforcement co-chair Michael Dicke spoke with Law360 about what seems to be waning enthusiasm for initial coin offerings—or ICOs—thanks to the SEC’s increasing enforcement actions combined with a general decrease in the values of cryptocurrencies.

Dicke, formerly the head of enforcement for the SEC’s San Francisco regional office, noted that the SEC’s increased regulatory scrutiny is “absolutely making it harder for new companies that want to do initial coin offerings.”

He told Law360 that the SEC’s recent suggestion that ICOs previously done in violation of the securities laws have a path to compliance by registering their offering is not a viable option for many crypto startups due to the expense and the fact that the SEC’s periodic reporting structure does not fit their model. Fortunately, for new issuances, other compliant avenues do exist, as outlined in the article.

The full article is available on Law360​ (subscription required).