Initial Coin Offerings (“ICOs”) are generating attention from both investors and the SEC. Investors’ interest is indicated by the more than $1.2 billion that ICOs reportedly have raised so far this year. Meanwhile, the SEC has recently asserted its authority in the space, releasing a report stating that digital tokens
SEC Chair Shines a Spotlight on “Unicorns” in Silicon Valley Remarks
On March 31, 2016, SEC Chair Mary Jo White delivered the keynote address at the Silicon Valley Initiative hosted by the SEC-Rock Center for Corporate Governance at Stanford University. A substantial portion of Chair White’s remarks focused on “unicorns,” or private start-up companies with valuations exceeding $1 billion. Chair White’s comments reflect the SEC’s apparent focus on, and concerns with, unicorn companies. Specifically, Chair White voiced concern over the accuracy of the financial information used to secure financing prior to an initial public offering (IPO), as well as the enterprise valuations which are calculated at or near unicorn levels.