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Ex-SEC employee called to ban ICO due to "flagrant violation of laws"

The former representative of the Securities and Exchange Commission (SEC) Joseph Grundfest urged as soon as possible to prohibit the initial placement of coins (ICO), calling it a violation of all existing standards. This writes The New York Times .

The expert noted that the violation became so large-scale and undisguised that it seems comical.

"The ICO is the most popular, blatant and notorious violation of federal securities legislation since the Hammurabi laws, " said Joseph Grundfest.
Despite the fact that in July the SEC equated some forms of raising funds in the form of tokens to issue securities , many companies still do not comply with this law. Grundfest believes that such cases need to promptly identify and punish violators.

Also, according to him, the market for primary floatation of coins needs additional regulation, however, the process of creating new norms so far takes too much time.

"These are not complicated cases. There is no need for a team of accountants who need to study complex financial records for hours, "Grundfest explained.
At the same time, the former SEC commissioner recognized the primary placement of coins as a useful tool for companies developing decentralized cloud storage networks in which tokens can act both as a means of payment and as an accounting tool.

At the same time, according to Grundfest, most ICO projects today are aimed not at producing a viable product, but for making a profit.

"Most of the projects that we observe today are a complete nonsense," he concluded.
Recall, in early November, the SEC issued a statement that promoters of ICO celebrities may violate the law .