SEC, CFTC intervention is a wake up call for crypto space

Author: John Crabb | Published: 1 Feb 2018

The two US securities regulators have taken a number of steps to prevent fraud and illegal activity in the burgeoning cryptocurrency space, after months of warnings.

Although not entirely unexpected, the move serves as a wakeup call to startups looking to enter the sector, and shows that the regulators don't intend to allow unlawful activity to go unchecked going forward. In what can only be viewed as a tussle for dominance in the space, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have each taken a number of steps. 

Tether, or USTD, is linked to the US dollarThis week the SEC closed down Texas-based AriseBank – an outfit claiming to offer cryptocurrency banking backed by the Federal Deposit Insurance Corporation - which had intended to complete an initial coin offering (ICO) in January. 
Last month it issued a cease and desist for the ICO of Munchee – a restaurant...