The initial coin offering (ICO) community needs to embrace self-regulation now to lessen the blows likely to come from enforcement and regulatory actions, according to speakers at CoinDesk’s Consensus: Invest yesterday.
A crackdown in the U.S. is inevitable, perhaps as soon as six to 12 months from now, warned Charles Hoskinson, CEO at Input Output and former CEO of the ethereum project.
This will likely occur once unsophisticated retail investors start to lose money in the space and run to the Securities and Exchange Commission (SEC) in search of recourse, he said during a panel discussion at the Tuesday conference in New York.
“I do believe there’s going to be some form of enforcement because, basically, what you have now is people offering [cookie-cutter ICO] services. It’s all just semantics and structuring and so forth,” Hoskinson said, adding that, while some projects may withstand scrutiny, many will not.
“When you see these types of structures, maybe some of them are legitimate, but 80 or 90 percent will end up just being ‘me too,'” said Hoskinson…