Crypto leaders invited to Capitol Hill to discuss ICO regulation

Several leaders in the cryptocurrency space have been invited to Capitol Hill to discuss regulations around initial coin offerings (ICOs).

In total, 32 industry leaders, lobbyists and nonprofits will attend a forum on 25th September following an official invitation from US Congressman Warren Davidson.

They include venture capital firms actively investing in digital tokens, such as Andreessen Horowitz and Union Square Ventures; token and traditional exchanges including Intercontinental Exchange, Kraken, Nasdaq, CME Group and Circle; nonprofit Coin Center; and other digital token and securities companies like Ripple, Harbor and CoinList, according to the list obtained by Axios.

Up for discussion

It is expected that the forum will discuss whether an ICO qualifies as a securities offering. Although Jay Clayton, the Securities and Exchange Commission’s (SEC) Chairman, has stated that he has yet to see an ICO that does not qualify as a securities offering, the agency has not issued any guidance outside of an investigation memo about one case and a number of enforcement actions against fraudsters.

Clayton has also said ICOs are attempting to benefit both from the liquidity and public marketing of a public offering and the lack of disclosure requirements of private fundraising. In June, however, the Director of the SEC’s corporation finance division, William Hinman, declared that Ether is not a security because its underlying network has reached a level of wide decentralisation.

According to Axios, Davidson’s office has been having conversations with the SEC about his plans for a potential ICO bill, but the agency and its chairman’s positions on the forum and bill are as yet unknown.