One of the most-hyped areas in tech investing right now looks certain to come under additional scrutiny after a decision by US regulators.
On Tuesday, the Securities and Exchange Commission (SEC) said that “ICOs” (Initial Coin Offerings) can sometimes be considered securities — and as such are subject to strict laws and regulations.
For the uninitiated, ICOs are a fancy new way of fundraising enabled by digital currencies like Ethereum — participants invest money and receive digital “tokens” in return.