US Securities and Exchange Commission (SEC) chairperson Jay Clayton has claimed that the market for initial coin offerings (ICO) is very opaque and susceptible to price manipulation. He further stated that the digital tokens issued for startup or open-source project fundraising are already ripe for misconduct.

In his speech at the Practicing Law Institute’s Institute on Securities Regulation seminar held in New York in early November 2017, Clayton said that the digital tokens can be compared to penny stocks and hidden fees on investment products.