The United States Securities and Exchange Commission, SEC, recently issued a Warning about celebrity ICO's. Especially in the United States the Number is increasing, of Celebrities they using their Fame to promote certain Coins.
Unlawful
The Situation according to ICO's is difficult in the United States. Recently, many US-Americans have been banned from ICO's worldwide as a necessary SEC License is too expensive. Many young Developers have criticized the SEC's Plan precisely because Start-ups rarely have the Capital for an expensive License.
In a Statement by the SEC earlier this Month, she also stressed that most of the ICO's promoted by Celebrities are likely to be illegal. The Reason for this may be the SEC's view that Tokens from ICO's are generally Securities for the SEC. The U.S. Securities and Exchange Commission assumes that ICO's will in most Cases have to be treated as Equities. From this Point of View, the Federal Laws on Securities must be applied.
Promotion
In Addition, a Celebrity or any other Person must indicate what Kind of Compensation has been issued for the Promotion. The SEC thus refers to a Law designed to show Customers that in most Cases such Promotions do not take Place on their own Initiative.
With the current Price Increases, especially in Bitcoin, a Wave of Regulation is currently going around the Globe. Just like the SEC, i always recommend you all a thorough Investigation before investing in ICO's!
