The SEC suspended trading of a public company that issued press releases claiming SEC approval of its cryptocurrency products. The company’s press releases advertised that it had partnered with an SEC qualified custodian for cryptocurrency transactions and that it was conducting an SEC-registered token offering. The SEC’s Cyber Unit Chief warned that the SEC “does not endorse or qualify custodians for cryptocurrency.”
Back in January, the SEC raised several regulatory questions around ICO offerings and notified the industry that it would not approve crypto-offerings until the issues were adequately addressed. Any efforts to suggest otherwise will draw the attention of the Enforcement Division’s Crypto Unit.