This article examines the way the Securities and Exchange Commission (SEC) has enforced securities laws with regard to Initial Coin Offerings (ICOs). It suggests that the SEC adopted a “do no harm approach” which successfully pursued two of its fundamental institutional goals when enforcing securities laws in the context of ICOs: investor protection and preservation of capital formation. The article examines the transition into a new phase of full enforcement action implemented by the SEC, and data on ICOs demonstrates that this rigorous enforcement of securities laws has not damaged the industry in the United States and may suggest that entrepreneurs have adapted to this enforcement approach. The article also emphasizes the importance of pursuing specific goals in the short-to-medium term, particularly in order to make securities regulation uniform and avoid differences at the state and federal levels, as well as to encourage industry authorities such as Self-Regulatory Organizations (SROs) to develop high standards for self-regulation.
