Securities and Exchange Commissioner Hester Peirce recommended that the Commission establish a web page where Fintech innovators could submit questions and review answers regarding initial coin offerings, tokens, distributed ledgers and other “crypto concepts.” According to Ms. Peirce, “[i]t is unfortunate that, to date, most of the communications from the SEC on the topic have come from our Division of Enforcement.” She stated that she would prefer that market participants who are “not using the ICO label as an alluring way to steal money first meet us in a more neutral space.”

Unrelatedly, the Texas State Securities Board instituted two emergency cease and desist orders related to the sale of unregistered securities involving purported Fintech investment schemes. The Securities Board charged Bitcoin Trading & Cloud Mining Limited and four affiliated persons and Forex EA & Bitcoin Investment LLC and two affiliated persons with soliciting investments in cryptocurrency-related businesses involving high profits when the investment schemes were unregistered. The Securities Board has now brought nine total emergency cease and desist orders since December 2017 against promoters of unregistered investment schemes involving cryptocurrencies. (Click here for an investor alert by the Securities Board that summarizes such actions.)