The recent drop in cryptocurrency prices was triggered in part by the strong actions announced by the U.S. SEC clarifying that market functions like custody and asset exchange are subject to strict enforcement of securities laws regardless of which software mechanisms are being used.
We think these actions by the SEC are an overdue and positive step in the right direction that will help the industry mature and weed out the high risk business models.
In particular the SEC ruled that developers of “smart contracts” were responsible for the operations of those contracts even if those operations were automated once they were put into production.
At SendGold it has always been non-negotiable that we offer one of the world’s top-quality assets in a clear and unambiguous legal structure that protects our customers, and our blockchain distribution channel is no exception to this. We think these actions by the SEC are an overdue and positive step in the right direction that will help the industry mature and weed out the high risk business models.
