Republican Congressman Warren Davidson has invited Ripple, ICE, NASDAQ and 30 other leading companies from the crypto space to discuss the regulation of initial coin offers in the US. The meeting is scheduled for September 25th, 2018 in Washington.
US Congressman Warren Davidson, representing the state of Ohio, will be inviting numerous figures from the cryptocurrency industry to discuss the regulation of Initial Coin Offerings (ICOs). The congressman has invited 32 leading companies from the world of cryptocurrency. The list of invitations includes Ripple, ICE, NASDAQ, Kraken, CME Group, Circle, Harbor, Coin Center, Union Square Ventures, and the parent company behind the New York Stock Exchange (NYSE), the Intercontinental Exchange (ICE), recently announced by Bakkt.
As Davidson explained earlier, he is pursuing a “light-touch” regulation for initial coin offerings. In his opinion, the lack of a legal framework for ICOs has made the market risky and uncertain, thus promoting fraudulent ICOs. Davidson wants to eliminate this regulatory ambiguity.
Although Jay Clayton, chairman of the SEC, stated months ago that he has not yet seen an ICO that cannot be classified as a securities under US law, the agency does not yet have a legal mandate to deal with fraudulent ICOs. So the main question will probably be whether ICOs are to be classified as securities and thus subject to the same laws and regulations as securities or whether separate, new regulations are needed.
In June, William Hinman, also a SEC official, said that Bitcoin says Ethereum is not a security token, even though the first ever token sale was in 2014. Hinman said back then that Ethereum’s underlying network has reached a high level of decentralization and therefore, cannot be considered a security token. It is, therefore, also questionable whether tokens should first be declared as securities and, once they have reached a certain degree of decentralization, lose this status and turn into something else.
In our view, it is also remarkable that the date falls within the period when the US Securities and Exchange Commission (SEC) wants to decide on the eagerly awaited Bitcoin ETF of the CBOE, VanEck and SolidX.
Davidson is expected to pass a law this fall. As such, the end of September could be an important date for the cryptocurrency market to look out for.