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> In this newly created advisory position, Ms. Szczepanik will coordinate efforts across all SEC Divisions and Offices regarding the application of U.S. securities laws to emerging digital asset technologies and innovations, including Initial Coin Offerings and cryptocurrencies.

I wonder which existing U.S. securities laws will be applied to existing cryptocurrencies.

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Based on recent SEC reports, The Securities Exchange Act, The Investment Company Act, and Investment Advisers Act are applicable to most ICOs that the SEC deems to be in violation of federal law.

The SEC reacts to complaints of losses. The ICO lawsuits have already started.[1] Currently being sued: Tezos, Giga Watt, Dynamic Ledger Solutions, Centra Tech, Monkey Capital, ATBCoin. Probably more.

This is when issuing an unregistered security bites back. The lawsuits often just claim it was an unregistered security, which is easy to prove. If someone lost money, they can go after the people behind the ICO on that basis.

[1] https://www.equities.com/news/class-action-lawsuits-hit-cryp...

> The SEC reacts to complaints of losses

The SEC also proactively brings suits against misbehaving persons.

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