Initial coin offerings (ICOs) charged by the United States Securities and Exchange Commission (SEC) may see a significant reduction in fines owed following a recent Supreme Court ruling.
Apex Court limits SEC's ability to return
According Bloomberg, the US Supreme Court issued a ruling on Monday (June 22, 2020), placing a limit on the refund requested by the SEC in fraud cases. As part of the court's decision, which was produced by an 8-to-1 majority, the Commission can no longer seek repayment above the accused party's net earnings.
In addition to restricting delivery to net earnings, justice writer Sonia Sotomayor for the main court stated that the funds recovered by the Commission should be geared towards the return of affected investors. For situations where such transfers to investors are not possible, the Supreme Court recommended that the funds be sent to the Treasury.
For the SEC, the Supreme Court decision is a victory for the Commission despite the reduction of its powers of disgust. Some experts say the ruling is preferable to the total eradication of the SEC's ability to seek such fines and penalties
The Supreme Court ruling could affect some crypto projects in the US who already have pending cases or are currently under investigation by the SEC. Since 2017, the Commission has been chasing ICOs that describe them as unlicensed security token sales.
Ruthless commission on ICO enforcement efforts
He failed Telegram token sale event It is perhaps one of the SEC's biggest wins in its ICO enforcement activities. Despite carrying out one of the ICOs with the highest income, Telegram no It has been able to move forward with its planned launch of TON blockchain.
According to informed, on several occasions, the SEC has filed charges against various ICOs from the 2017 era. Even the celebrities and other public figures have not escaped the SEC's compliance network, Grammy-winning music producer DJ Khaled and boxing champion Floyd Mayweather have tucked in trouble with the commission.
The SEC's characterization of ICO tokens as securities could change if Congress approves the Taxonomy law of tokens. This legislation seeks to protect crypto from securities laws while establishing a de minimis tax exemption for profits in cryptocurrency trading below a certain limit.
The 2020 Cryptocurrency Act, another bill related to cryptocurrencies before Congress, aims to provide a framework for classifying digital assets and outlining the responsibilities of federal regulatory agencies regarding cryptocurrencies.