Foodie app Munchee, a Californian start-up which had been looking to finance its business development through an upcoming token sale has decided not to challenge a ruling by the SEC’s new cyber unit that its ICO qualifies as an unregistered securities sale, it has been revealed.
As a result, Munchee, which had been seeking to raise up to $15 million through its crowd sale, has voluntarily undertaken a refund of all contributions so far received, a spokesman declared.
SEC Making Clear Statement
The SEC cyber unit action appears to have been timed to coincide with the release by the SEC itself of a formal and detailed statement – long awaited by many from within the ICO space – clarifying its own position on the blockchain-based fundraising method.
In that statement, the SEC’s chairman Jay Clayton appears to have indicated that any ICO falling under its jurisdiction should expect to be treated as a security issue.
In that context, it appears likely that the Munchee token sale will be the first in a long list of US-based ICOs that have not formally registered as a security sale to be contacted by the SEC cyber unit as it seeks now to send out an unambiguous signal to the markets about its stance.