This is pretty much basis of the majority of laws on the books to be honest.
A good part of government's job is to limit risk so that those most at risk don't suffer. Speed limits exist to limit risk. Drug laws exist to limit risk. Bank regulations exist to limit risk. SEC laws exist to limit risk. In a system with safety nets (unemployment laws, bankruptcy laws, welfare, food stamps, subsidized housing programs, etc), there must be some limits to prevent abuse of these programs from undue risk.
>The complaint was filed in Dallas, Texas, on Thursday and unsealed late Monday. The SEC said Dallas-based AriseBank "used social media, a celebrity endorsement, and other wide dissemination tactics to raise what it claims to be $600 million of its $1 billion goal in just two months."
>The court approved an emergency asset freeze over AriseBank and its two co-founders. The SEC said that for the first time in connection to an ICO fraud, it has appointed a third-party custodian, or receiver, to secure the firm's cryptocurrency holdings. Those assets include bitcoin, litecoin, bitshares, dogecoin and bitUSD.
>"The ICO is an illegal offering of securities because there is no registration filed or in effect with the SEC, nor is there an applicable exemption from registration," the complaint said.