Wall Street Regulators to Take Action Against Crypto Firms
The SEC and the Financial Industry Regulatory Authority (FINRA) announced this week that they will be taking actions against cryptocurrency companies such as levying fines which may help regulate the nascent asset class.
The Wall Street regulators said that they consider some tokens to be securities, which would make them subject to federal laws.
FINRA has already taken action against the owner of Rocky Mountain Ayre for selling HempCoin. The cryptocurrency, which was supposedly backed by shares of Timothy Ayre’s company, was not registered as a security.
Meanwhile, the SEC announced that digital currency vendor TokenLot had already settled for $471,000 in disgorgement and interest after acting as an unregistered broker-dealer for the sale of virtual tokens.