Colorado State Securities Commissioner Gerald Rome has issued a cease and desist order to four ICOs for allegedly offering unregistered securities

There is an Initial Coin Offering (ICO) crackdown happening in the United States right now. As ICOs which are not compliant with the rules from the U. S. Securities and Exchange Commission (SEC) are not allowed, regulators from all over the country are cracking down on these fundraisers as a way to protect the investors and make companies abide by the Securities Act.

Now, the Colorado regulators took action against four different ICOs in the state. They sent them to cease and desist orders, which makes up for a total of 12 orders against similar companies in this state only so far.

The ICO Task Force of the state has attacked PinkDate, Prisma, Clear Shop Vision Ltd and Bitcoin Investments Ltd for not being regulated ICOs. While it is not clear whether exactly these companies are based, Colorado’s Division of Securities affirms that they were being promoted to Colorado residents and that they are unregistered securities and, therefore, against the law.

Commissioner Gerald Rome, from the Colorado Securities Division, has said that the main goal of the company is to ensure that the securities market and the investors are able to operate protected from illegal actors and from scams. Therefore, the main goal is to protect the many companies from Colorado which are working hard to promote their ICOs inside the scope of the law.

He has also affirmed that he is eager to work with the companies that are eager to follow the standard procedure to offer securities in a legal manner in the United States. Rome has also affirmed that he wants to make Colorado into a leader of innovation in the crypto space and that you have to weed out the bad companies first.

The ICO Task Force of the state has been working since May to stop illegal crypto businesses that offer securities for people in the state.

Just this week, Colorado elected a crypto-friendly governor, Jared Polis, which may help the state in developing a proper framework for ICOs and keeping the state clean of scammers.

U. S. Focus On Attacking Illegal Crypto ICOs

More and more U. S. regulators are attacking fraudulent ICOs. Texas, for instance, has issued cease and desist orders for companies based in Australia and Canada.

The Operation Cryptosweep, which is also being made in Colorado, is also looking for scams and trying to shut them down. There are investigations going on in California, Texas, North Dakota and many other states to clean the crypto market and these organizations are not even close of stopping.

Also read: Experts say that financial institutions will have to replace their existing internal IT infrastructure for greater adoption of Blockchain and crypto

Source: https://bitcoinexchangeguide.com/colorado-ico-take-force-regulators-clampdown-on-four-more-crypto-token-projects/