Ethereum price continues to hold at $200 levels after SEC warning on DAO, ICO

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ethereum, ethereum price

Etherum price has withstood the warnings issued by the US Securities and Exchange Commission (SEC) over DAO and ICO and has been hovering at $200 levels despite some believing that the cryptocurrency would decline owing to SEC warnings.

The SEC said a couple of days ago that while they have decided that for the moment, the DAO (Decentralized Autonomous Organization) project and its founders will not face any charges for violating U.S. securities laws, the “DAO Tokens” will be subject to the requirements of the U.S. federal securities laws. This has effectively produced a sort of relief in the cryptocurrency industry thereby enabling Ethereum (ETH) to stabilize.

According to the SEC, tokens that promise to give investors a return should be regulated as securities and thus be registered with the SEC. The SEC has also stressed that investing in these “DAO tokens” might be very risky and unsafe for consumers and investors.

“As discussed in the Report, virtual coins or tokens may be securities and subject to the federal securities laws,” the SEC wrote in the release. This effectively assures investors and users that there will be some legitimacy to the ICOs that have made the whole cryptocurrency market a lot more speculative.

Like regulation of cryptocurrency itself, establishing a legal landscape for token sales would serve to encourage legitimate schemes’ growth while pushing out bad actors, some say. The Commission has also published an investor bulletin that describes the current status of ICO or Initial Coin Offerings. In the bulletin, the SEC is advising investors and consumers to be very careful in which ICOs they decide to invest their money. They point out that participants should properly review an ICO for potential fraud or mismanagement of funds.

Ethereum lost around nine per cent in the past 24 hours with prices falling below $200 levels, but things didn’t stay that way for long and as of this writing Ethereum price has recovered to $205.

The fall is minimal, however, compared to that seen earlier this month when the altcoin touched $140 in a bout of volatility which affected cryptocurrencies across the board.

1 COMMENT

  1. This is good news. Ensuring less likely scam start ups. It should be applied internationally! Great news for ETHereum holders and future investors. ICO’s need to be accountable and hopefully capped.

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