On January 22, Monday, a commentary from the Securities and Exchange Commission said U.S. companies that changed their name to "blockchain" may soon face regulatory scrutiny.
In a speech to U.S. securities regulators on Monday, SEC Chairman Jay Clayton made a brief and sharp speech on blockchain technology. Specifically, Clayton spoke of the growing number of companies that have added the term "blockchain" to their names to "use perceptual commitment" to do that.
As previously reported in this issue, several companies in the United States and elsewhere changed their names, so "blockchain" appeared in their official titles. The effect of this move is to significantly increase the stock value of these companies, generate short-term profits, and increase public awareness.
For example, a beverage company called Long Island Iced Tea Company changed its name to "Long Island Blockchain," causing the company's stock price to skyrocket to stop being delisted by the Nasdaq.
However, to a large extent, the question of how companies that "blockchain" their names are actually linked to, and to what extent they are put into practice, remains questionable.
"I suspect that none of you here can accept that a company that originally had no connection to a distributed ledger and blockchain technology changed its name to a blockbuster meaning blockbuster by getting into the blockchain industry and issuing it immediately Stocks, and do not disclose these changes and risks to mainstream investors. "
This week, British telecoms acquisition firm Stapleton Capital also joined the ranks to become "the global blockchain," January 22, the company's stock once up 130%, the final increase of stable at 45%.
For followers, the SEC seems to be quick to step in to ensure that these companies do not do anything about them.
In a speech on the blockchain published Monday, Clayton said:
"The SEC is closely monitoring the disclosure of information on listed companies that have transformed their business model into taking advantage of people's expectations of distributed ledger technology and disclosing information that is compliant with the securities laws, especially in distribution.
It's terrible really isn't it :) "Long Island Blockchain" is just a classic though - they deserve some sort of upvote as a company just for giving that a try :)
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