Shutterstock SEC SENDS INQUIRY LETTERS TO HUNDREDS OF BITCOIN COMPANIES ABOUT UNREGISTERED SECURITIES

Hundreds of Bitcoin companies that have released unregistered securities on Counterparty, Cryptostocks have been sent inquiry letters by the SEC. The SEC is asking these Bitcoin companies to voluntarily hand over any documentation that they have regarding their unregistered securities offering. Many Bitcoin companies have been anticipating such action from the SEC and have the necessary information already prepared. On the other hand, other companies may choose to argue that their Counterparty tokens are not securities in any way shape or form.
The SEC first tackled a Bitcoin company’s unregistered securities crowdfunding sale when fining Erik Voorhees for his ‘illegal’ Satoshi cDice IPO. The money that Voorhees raised and the amount of fees that he was able to avoid by using new technologies and platforms did not outweigh the amount that he was fined. Now, the SEC is taking aim again, undoubtedly viewing every Bitcoin company as a potential fee-provider.

This post was published at Crypto Coins News on October 28, 2014.