SEC punishes Unikrn as it cracks down on cryptocurrencies
The SEC said it was one more in a growing number of enforcement actions related to “initial coin offerings,” or ICO events where companies sell blockchain-based cryptocurrencies to the public. Unikrn thought what it was doing was legal, but it was in a legal gray area that the SEC ultimately decided crossed the line. The SEC ruled that the company was selling unregistered securities that would have required SEC approval. “Our enforcement actions can serve to deter such violations and protect harmed investors,” Peirce said. “We should strive to avoid enforcement actions and sanctions, however, that enervate innovation and stifle the economic growth that innovation brings.