CBOE Global Markets President: ICO Market to Face a 'Regulatory Reckoning'

CBOE Global Markets President Chris Concannon has claimed that the initial coin offering market could soon face a two-fold regulatory "Reckoning," Business Insider reports June 19.According to Concannon, the reckoning will come in two waves.

"The reckoning will come in two waves. First, the SEC will go after ICO market participants. Then, class-action lawsuits against the teams behind ICO projects will surge."

Concannon said that ICO investors "Should lay awake at night" worrying about the uncertainty in the ICO market.

Concannon explained that if someone offered an unregistered coin, they would technically have issued an unregistered security, and in the eyes of the law would be considered an "Unregistered underwriter."

"If you sold someone an unregistered security you are liable to them if they decide to take them to court."

Whether the SEC would retroactively prosecute ICO projects remains uncertain.

"I don't think it is the case that people involved in the business are going to be prosecuted against as if they have been violating the law. But there is a little bit of a room for exception with something particularly egregious."

In 2017, the ICO market broke funding records, raising a fiat equivalent of $4 billion.

Using data from from Token Report, Business Insider estimates that ICOs will raise $7 billion in 2018.Financial regulators have repeatedly urged the public to comply with existing laws, and have taken action against those who have failed to do so.

Earlier today, founder of McAfee Antivirus Software and crypto enthusiast John McAfee announced that he will stop cooperating with ICOs and promoting ICO projects due to supposed threats from the SEC. McAfee, who revealed his second run for president in early June, claimed that he charges $105,000 per tweet to promote cryptocurrency projects and products.