(behind WSJ paywall, click here for readable version)
In a joint statement with the Chair of the CFCT, SEC's Jay Clayton continues with the same tone of his opening remarks.
While regulatory efforts should operate in the spirit of embracing innovation, they are very concerned by the current state of affairs in crypto land which shows "little or no regard to our proven regulatory approach".
They hint at revisiting regulatory frameworks for exchanges to bring them under the scrutiny of the SEC or CFCT (currently operating under states regulations).
They hint at vigorous enforcement against "those who seek to evade the registration, disclosure and antifraud requirements of our securities laws."
With respect to ICOs, and directly addressing lawyers, advisors and exchanges, the are 'disturbed' by "many examples of form being elevated over substance, with form-based arguments depriving investors of mandatory protections"
. Again this feels like an attack at the instrument of the SAFT.
On a positive note, they do appreciate the underlying technology has potential for "productivity-enhancing economic development"
and they hint at taking a forward-looking approach to this new market.
Overall, we should continue to expect more enforcement coming from the SEC, which is likely to result in less public ICOs and more private rounds, certainly on US ground. We are definitely seeing more and more projects deliberately avoiding a public token sale all-together. Utility tokens are clearly hard to deal with in context of the existing regulatory framework, the SAFT was a start to self-regulation but clearly not the final answer. To that end, it's great to see new initiatives like Consensys Brooklyn project
taking off (their Telegram group is buzzing with activity!).