It's not just national-level securities regulators that are keeping a close eye on initial coin offerings (ICOs).

Late last month, the North American Securities Administrators Association (NASAA) – an organization composed of local, state and regionally based markets watchdogs in Canada, Mexico and the United States – published its Enforcement Report for 2017. While primarily an overview of the kinds of enforcement actions taken in the past year and the issues facing securities regulators, it notably contains a section on the blockchain use case.

After noting that NASAA members believe that trading around cryptocurrencies in general "is likely to pose a significant risk to investors," it makes note of the growing interest in ICOs, which can be used to bootstrap and fund new blockchain networks but have also served as vehicles for alleged fraud in the past.