The SEC and CFTC are paying closer attention to the digital coin market.
The Securities and Exchange Commission and Commodities Futures Trading Commission released a joint statement Friday emphasizing their commitment to take action against fraud in both cryptocurrencies and the initial coin offering market.
Here’s the full statement:
“When market participants engage in fraud under the guise of offering digital instruments – whether characterized as virtual currencies, coins, tokens, or the like – the SEC and the CFTC will look beyond form, examine the substance of the activity and prosecute violations of the federal securities and commodities laws. The Divisions of Enforcement for the SEC and CFTC will continue to address violations and bring actions to stop and prevent fraud in the offer and sale of digital instruments.”