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US Regulators Tout "open-door Policies" For Token Sales


The heads of two US regulatory agencies have said their agencies had "open-door policies" for those trying to launch token sales.

Commodity Futures Trading Commission (CFTC) enforcement director James McDonald and Securities and Exchange Commission (SEC) Enforcement Division Cyber Unit chief Robert Cohen made remarks during a panel discussion at CoinDesk's blockchain conference 'Consensus 2018' in New York.

"The SEC has been open about meeting with people from the industry, to come in and meet with the staff, to talk about the ideas you have, the new developments, and have a dialogue about the new technology. The commission encourages ways to raise capital, we don't regulate the technology - we regulate the financial industry and the markets," Cohen told the gathering of crypto community.

McDonald said CFTC understands as a regulator that a certain amount of flexibility is required in its approach. "We're doing it in a way that doesn't hinder innovation and doesn't interfere with other regulatory priorities."

Associate Deputy Attorney General Sujit Raman, who also spoke in the panel, stressed the need for the Department of Justice to investigate "to know what's going on" in the larger virtual currency market where large sums of money are flowing without touching financial institutions.

Kiran Raj, chief strategy officer at crypto exchange Bittrex, pointed to a lack of regulatory clarity surrounding token sales.

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