Nasdaq CEO Adena Friedman said ICOs are "important risks" for retail investors in a recent speech.
CEO of Nasdaq: "The SEC is doing almost no oversight at ICOs."
Friedman, who spoke at the Future of Fintech conference in New York, shared his concerns about ICOs. Friedman adds that retail investors are at risk of fraud by ICOs, often because they lack sufficient information, transparency, regulation and legal liability.
Friedman stresses that ICO fraud victims are new investors who often have little access to information. According to Friedman, the US Securities and Exchange Commission (SEC) has virtually no oversight in the ICOs, while banks are required to provide data to retail investors, as banks do in IPOs.
Chris Concannon: "The ICO market is going to have a two-tier" reckoning. "
The Nasdaq CEO adds to the story:
None of this is in the ICO sector, and everything is retail investors' purchases. I have concerns about lack of transparency and accountability in companies seeking funding through ICOs and lack of oversight.
Friedman says the SEC supports the ICOs to classify them as securities. If the SEC categorizes ICOs as informal securities, the ICO market will soon have a two-tier "settlement", according to Chris Concannon, CBOE's Global Markets President.
From SEC, John McAfee is ICO forbidden!
First, the US Securities and Exchange Commission will define ICOs as "informal securities", and assets in the hands of investors will become worthless. After that, the second layer will come and lawsuits will be filed against companies behind ICO projects.
Crypto money supporter John McAfee said on Tuesday he would end his first money offer (ICO). The renowned cyber security expert said he would leave the ICO recommendation for a print made by the US Securities and Exchange Commission (SEC) with a tweet.
