SEC Staff Releases Statement on Digital Asset Securities Issuance and Trading and Provides Guidance on Resolving Unregistered ICOs

December 05, 2018

The U.S. Securities and Exchange Commission announced two settled enforcement actions on November 16, 2018, imposing registration requirements and civil penalties against issuers of initial coin offerings (ICOs) for failing to register their respective offerings under Section 5 of the Securities Act of 1933.1 These settlements – involving Paragon and AirFox – are the first enforcement actions imposing civil penalties against issuers of digital asset tokens in an ICO for violating the registration requirements of the federal securities laws, in the absence of allegations of fraud. 

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