Fox Business journalist Eleanor Terrett said that until 2024, the US Securities and Exchange Commission (SEC) can still accuse the creators of Ethereum of violating the US Securities Act.
According to Eleanor Terrett, the powers of the SEC extend to all cryptoassets except bitcoin. Until now, the agency could bring charges against companies that conducted unregistered securities offerings in the United States within a five-year statute of limitations. Based on this, the period for which the regulator could “crack down” on Ethereum ended in 2019.
However, in 2021, the US Congress granted the SEC a 10-year “window” for the regulator to seek restitution for profits made illegally as a result of violations of the Securities Act. A Fox Business journalist suggested that thanks to this, the SEC still has the opportunity to accuse Ethereum of illegally conducting an ICO.
“By law, the SEC has until 2024 to fine Ethereum for conducting an unregistered ICO. Will the Commission seize this chance? Time will tell,” Terrett tweeted.
The SEC continues to crack down on violations of the Securities Act. Recently, the agency filed a lawsuit against the Dragonchain cryptocurrency project for organizing an ICO in 2017, during which $16.5 million was raised. The regulator has also paid close attention to the non-fungible token (NFT) market, asking their issuers for detailed information about token offerings.
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